Peregrine Exam Day 9
Foreign Direct Investment - ANS -Investment made by a foreign company in the economy of
another country.
FDIs are used in.... - ANS -open markets not closed markets for investors
What are the types of FDIs? - ANS -Horizontal, vertical and conglomerate
Horizontal FDI - ANS -A type of FDI in which a firm duplicates its home country-based activities
at the same value chain stage in a host country.
Vertical FDI - ANS -A type of FDI in which a firm moves upstream or downstream at different
value chain stages in a host country.
Conglomerate FDI - ANS -Investing in business overseas that has no relationship to your core
business.
What bureau tracks FDIs into the U.S.? - ANS -Economic Analysis
What is an example of FDI? - ANS -Apple's investment in China
What are 4 ways to increase job creation? - ANS -Reduce interest rates, spend on public
works, spend on unemployment benefits, and cut business payroll taxes for new hires
multinational corporation - ANS -An organization that manufactures and markets products in
many different countries and has multinational stock ownership and multinational management
What can have a positive economic effect? - ANS -Multinational corporations
T/F Transnational business is considered diversifying the investment? - ANS -T
Market Entry Strategies - ANS -various tactics that managers use to enter foreign markets
direct exporting - ANS -practice by which a company sells its products directly to buyers in a
target market
Licensing - ANS -the legal process whereby a licensor allows another firm to use its
manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
Foreign Direct Investment - ANS -Investment made by a foreign company in the economy of
another country.
FDIs are used in.... - ANS -open markets not closed markets for investors
What are the types of FDIs? - ANS -Horizontal, vertical and conglomerate
Horizontal FDI - ANS -A type of FDI in which a firm duplicates its home country-based activities
at the same value chain stage in a host country.
Vertical FDI - ANS -A type of FDI in which a firm moves upstream or downstream at different
value chain stages in a host country.
Conglomerate FDI - ANS -Investing in business overseas that has no relationship to your core
business.
What bureau tracks FDIs into the U.S.? - ANS -Economic Analysis
What is an example of FDI? - ANS -Apple's investment in China
What are 4 ways to increase job creation? - ANS -Reduce interest rates, spend on public
works, spend on unemployment benefits, and cut business payroll taxes for new hires
multinational corporation - ANS -An organization that manufactures and markets products in
many different countries and has multinational stock ownership and multinational management
What can have a positive economic effect? - ANS -Multinational corporations
T/F Transnational business is considered diversifying the investment? - ANS -T
Market Entry Strategies - ANS -various tactics that managers use to enter foreign markets
direct exporting - ANS -practice by which a company sells its products directly to buyers in a
target market
Licensing - ANS -the legal process whereby a licensor allows another firm to use its
manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
