Correct Answers 2025 Update
a japanese car manufacturer acquires an Italian producer of car tires. This is an example of a(n)
________________ - Correct answer acquisition
developing nations currently account for _____________ of the FDI in the form of cross-border
mergers and acquisitions - Correct answer about one-third or less
the largest sources country for FDI has been _____________ - Correct 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 - Correct answer foreign direct investment
________________ argues that FDI is a benefit to both the source country and to the host country -
Correct 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. - Correct answer pragmatic nationalism
recent years have seen a _____________ in the number of countries that adhere to a radical
ideology regarding FDL - Correct answer marked decline
the two most common methods of restricting inward FDI are ownership restraints and
_______________ - Correct answer performance requirements
which of the following is an example of a greenfield investment - Correct 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 - Correct answer its wealthy domestic markets
______________ perform a direct connection function in capital markets - Correct 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 - Correct answer debt loan
the cost of capital is - Correct answer higher in a purely domestic capital market than in a global
market
___________ refers to the movements in a stock portfolio's value that are attributable to
macroeconomic forces affecting all firms in an economy - Correct answer systematic risk