AND ANSWERS
Involves direct ownership in productive assets where the MNC has control over its investment -
ANS Foreign Direct Investment
amount of FDI over a period of time (one year) - ANS Flow
total accumulated value of foreign owned assets - ANS Stock
amount of FDI from a country (cumulative, out of a country) - ANS Outflow
amount of FDI entering a country - ANS Inflow
Which of the following is not a factor leading to growth of FDI?
A. A fear of protectionism
B. political and economic changes
C. increase in tariffs worldwide
D. new bilateral investment treaties
E. globalization of the world economy - ANS C
Which factor of growth can be described as less trade barriers?
A. A fear of protectionism
1
B. political and economic changes
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, C. increase in tariffs worldwide
D. new bilateral investment treaties
E. globalization of the world economy - ANS A
Which factor of growth can be described as deregulation, privatization, fewer restrictions?
A. A fear of protectionism
B. political and economic changes
C. increase in tariffs worldwide
D. new bilateral investment treaties
E. globalization of the world economy - ANS B
Which factor of growth can be described as regional integration but between good countries?
A. A fear of protectionism
B. political and economic changes
C. increase in tariffs worldwide
D. new bilateral investment treaties
E. globalization of the world economy - ANS D
Which factor of growth can be described as many companies now viewing the world as their
market?
A. A fear of protectionism
B. political and economic changes
C. increase in tariffs worldwide
D. new bilateral investment treaties
E. globalization of the world economy - ANS E
Which of the following is not a recent trend in FDI?
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A. Developed nations still largest share of FDI inflows
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