AGB 302 Quiz 4 Questions and Answers
a japanese car manufacturer acquires an Italian producer of car tires. This is an
example of a(n) ________________ - Answer-acquisition
developing nations currently account for _____________ of the FDI in the form of cross-
border mergers and acquisitions - Answer-about one-third or less
the largest sources country for FDI has been _____________ - Answer-the United
States
___________ gives a firm tight control over manufacturing, marketing, and strategy in a
foreign country that may be required to maximize its profitability - Answer-foreign direct
investment
________________ argues that FDI is a benefit to both the source country and to the
host country - Answer-the free market view
an aspect of _______________ is the tendency to aggressively court FDI believed to be
in the national interest by, for example, offering subsidies to foreign MNEs in the form of
tax breaks or grants. - Answer-pragmatic nationalism
recent years have seen a _____________ in the number of countries that adhere to a
radical ideology regarding FDL - Answer-marked decline
the two most common methods of restricting inward FDI are ownership restraints and
_______________ - Answer-performance requirements
which of the following is an example of a greenfield investment - Answer-a chinese
sugar maker setting up a sugar crushing facility in cuba
which of the following factors has made the united states an attractive target for foreign
direct investment - Answer-its wealthy domestic markets
______________ perform a direct connection function in capital markets - Answer-
investment banks
a(n) ___________ requires a corporation to repay a predetermined portion of the loan
amount at regular intervals regardless of how much profit it is making - Answer-debt
loan
the cost of capital is - Answer-higher in a purely domestic capital market than in a global
market
a japanese car manufacturer acquires an Italian producer of car tires. This is an
example of a(n) ________________ - Answer-acquisition
developing nations currently account for _____________ of the FDI in the form of cross-
border mergers and acquisitions - Answer-about one-third or less
the largest sources country for FDI has been _____________ - Answer-the United
States
___________ gives a firm tight control over manufacturing, marketing, and strategy in a
foreign country that may be required to maximize its profitability - Answer-foreign direct
investment
________________ argues that FDI is a benefit to both the source country and to the
host country - Answer-the free market view
an aspect of _______________ is the tendency to aggressively court FDI believed to be
in the national interest by, for example, offering subsidies to foreign MNEs in the form of
tax breaks or grants. - Answer-pragmatic nationalism
recent years have seen a _____________ in the number of countries that adhere to a
radical ideology regarding FDL - Answer-marked decline
the two most common methods of restricting inward FDI are ownership restraints and
_______________ - Answer-performance requirements
which of the following is an example of a greenfield investment - Answer-a chinese
sugar maker setting up a sugar crushing facility in cuba
which of the following factors has made the united states an attractive target for foreign
direct investment - Answer-its wealthy domestic markets
______________ perform a direct connection function in capital markets - Answer-
investment banks
a(n) ___________ requires a corporation to repay a predetermined portion of the loan
amount at regular intervals regardless of how much profit it is making - Answer-debt
loan
the cost of capital is - Answer-higher in a purely domestic capital market than in a global
market
