WGU D080 - module 4
WGU D080 - module 4
Study online at https://quizlet.com/_gswiv1
1. portfolio investment Investment in a foreign country via purchase of stocks, bonds, etc.
Portfolio investors do not exercise managerial control of the foreign operation.
2. foreign direct invest- a capital investment that is owned and operated by a foreign entity
ment
3. inward FDI investments made in a country from another country
invest. from US into the UK
4. outward FDI investments made by domestic companies into a foreign company
invest. from US to UK
5. how/why to discour- tax rates
age FDI ownership restrictions
protect local industries
maintain independence
manage economic growth
6. how/why to pro- incentives
mote FDI reduce beauracracy
advanced education/job training
new tech
new business knowledge
7. horizontal FDI when a company opens a new market in a foreign country to sell to that local
market.
8. vertical FDI when a company invests internationally to provide input to its core operations.
9. backward vertical a firm brings goods back to its home country (supplier)
FDI
10. forward vertical FDI firms sells goods into local or regional market (distributor)
1/5
, WGU D080 - module 4
WGU D080 - module 4
Study online at https://quizlet.com/_gswiv1
11. greenfield FDI when a company builds a new production facility abroad
12. brownfield FDI when a company purchases/leases existing production facilities to launch a
new production activity
13. regional economic Agreements among countries in a region to remove barriers to the flow of
integration goods, services, and factors of production between each other
14. REI: free trade barriers to trade are removed between member countries.
15. REI: customs union free trade
+ a common policy toward trade with nonmembers.
16. REI: common mar- free trade + customs union
ket + restrictions on labor, tech, and capital movement are removed.
17. REI: economic union free trade + customs union + common market
+ adopt a common economic policy such as common currency, harmonized
taxes, and social policies.
18. REI: political union free trade + customs union + common market + ec. union
+ unification of all policies by a common organization; behave as a single
country - one military.
19. benefits of REI higher trade
low consumer prices
high growth
cooperation and peace
comparative advantages in production
remove labor restrictions (more jobs)
20. drawbacks of REI members trade more with each other
may move to cheaper labor markets (job loss)
may give up rights
2/5
WGU D080 - module 4
Study online at https://quizlet.com/_gswiv1
1. portfolio investment Investment in a foreign country via purchase of stocks, bonds, etc.
Portfolio investors do not exercise managerial control of the foreign operation.
2. foreign direct invest- a capital investment that is owned and operated by a foreign entity
ment
3. inward FDI investments made in a country from another country
invest. from US into the UK
4. outward FDI investments made by domestic companies into a foreign company
invest. from US to UK
5. how/why to discour- tax rates
age FDI ownership restrictions
protect local industries
maintain independence
manage economic growth
6. how/why to pro- incentives
mote FDI reduce beauracracy
advanced education/job training
new tech
new business knowledge
7. horizontal FDI when a company opens a new market in a foreign country to sell to that local
market.
8. vertical FDI when a company invests internationally to provide input to its core operations.
9. backward vertical a firm brings goods back to its home country (supplier)
FDI
10. forward vertical FDI firms sells goods into local or regional market (distributor)
1/5
, WGU D080 - module 4
WGU D080 - module 4
Study online at https://quizlet.com/_gswiv1
11. greenfield FDI when a company builds a new production facility abroad
12. brownfield FDI when a company purchases/leases existing production facilities to launch a
new production activity
13. regional economic Agreements among countries in a region to remove barriers to the flow of
integration goods, services, and factors of production between each other
14. REI: free trade barriers to trade are removed between member countries.
15. REI: customs union free trade
+ a common policy toward trade with nonmembers.
16. REI: common mar- free trade + customs union
ket + restrictions on labor, tech, and capital movement are removed.
17. REI: economic union free trade + customs union + common market
+ adopt a common economic policy such as common currency, harmonized
taxes, and social policies.
18. REI: political union free trade + customs union + common market + ec. union
+ unification of all policies by a common organization; behave as a single
country - one military.
19. benefits of REI higher trade
low consumer prices
high growth
cooperation and peace
comparative advantages in production
remove labor restrictions (more jobs)
20. drawbacks of REI members trade more with each other
may move to cheaper labor markets (job loss)
may give up rights
2/5
