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INTERNATIONAL ECONOMICS 5TH EDITION FEENSTRA COMPREHENSIVE EXAM SCRIPT SOLVED QUESTIONS GRADED A+

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INTERNATIONAL ECONOMICS 5TH EDITION FEENSTRA COMPREHENSIVE EXAM SCRIPT SOLVED QUESTIONS GRADED A+

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INTERNATIONAL ECONOMICS 5TH
EDITION FEENSTRA COMPREHENSIVE
EXAM SCRIPT SOLVED QUESTIONS
GRADED A+

◉ Strategic Trade Policy
Answer: Government helps domestic firms gain a competitive
advantage.


◉ Foreign Direct Investment (FDI)
Answer:


◉ FDI
Answer: Direct investment in a foreign business or facility.


◉ Greenfield Investment
Answer: Building a new foreign operation from scratch.


◉ Acquisition
Answer: Buying an existing foreign company.

, ◉ Radical View
Answer: FDI is harmful and exploits host countries.


◉ Pragmatic Nationalism
Answer: Accept FDI only if benefits exceed costs.


◉ Host Country Benefit
Answer: Jobs, technology transfer, investment.


◉ Home Country Cost
Answer: Capital leaves the country; possible job losses.


◉ Strategy of Global Business
Answer:


◉ Value Chain
Answer: Activities that create value, from production to customer
service.


◉ Global Standardization Strategy
Answer: High cost pressure, low customization pressure; same
product worldwide.

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