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