BUSI 311 (3) Questions with CORRECT Answers
Question:
The resourcebased view argues that internalization is a response to the imperfect
rules governing international transactions. Select one: True False
Answer:
False
Question:
The radical view treats FDIs as an instrument of imperialism. Select one: True
False
Answer:
True
Question:
Which of the following assumptions is present in the classical theories of
international trade?
Answer:
Resource mobility is not easy to achieve b. No complications in foreign exchange
transactions c. Different produces have different product life cycles d.
Transportation costs should underpin foreign trade
Question:
Firms prefer FDI to licensing because FDI_____. a. requires complete dissemination
of technological knowhow to host nation entity b. protects the firm from economic
agglomeration c. provides the firm with direct ownership to its foreign assets d.
increases the chances of opportunism when dealing with a host nation entity
Answer:
c. provides the firm with direct ownership to its foreign assets
Question:
An FPI does not provide management control rights to the investing firm. Select
one: True False
Answer:
True
Question:
The resourcebased view argues that internalization is a response to the imperfect
rules governing international transactions. Select one: True False
Answer:
False
Question:
The radical view treats FDIs as an instrument of imperialism. Select one: True
False
Answer:
True
Question:
Which of the following assumptions is present in the classical theories of
international trade?
Answer:
Resource mobility is not easy to achieve b. No complications in foreign exchange
transactions c. Different produces have different product life cycles d.
Transportation costs should underpin foreign trade
Question:
Firms prefer FDI to licensing because FDI_____. a. requires complete dissemination
of technological knowhow to host nation entity b. protects the firm from economic
agglomeration c. provides the firm with direct ownership to its foreign assets d.
increases the chances of opportunism when dealing with a host nation entity
Answer:
c. provides the firm with direct ownership to its foreign assets
Question:
An FPI does not provide management control rights to the investing firm. Select
one: True False
Answer:
True
