AGB 302 Final Exam Questions with 100% Verified Answers

FDI has accelerated faster than world trade growth. - Answer-Which of the following statements is true about the growth of foreign direct investment in the world economy over the last few decades? It's wealthy domestic markets - Answer-Which of the following factors has made the United States an attractive target for foreign direct investment? total accumulated value of foreign owned assets at a given time - Answer-The stock of FDI is the: Raw material availability - Answer-Which of the following is the prime reason why Africa has attracted FDI in recent years? Mergers and acquisitions are quicker to execute than greenfield investments - Answer-When contemplating FDI, why do firms apparently prefer to acquire existing assets rather than undertake greenfield investments? Licensing - Answer-A French wind power company gives an Indonesian company the right to produce and sell wind turbines in return for a royalty fee on every unit sold. Which business practice is this an example of? Transportation costs - Answer-Which of the following specifically reduces the viability of an exporting strategy specifically for products with low value-to-weight ratios? When the firm needs tight control over a foreign entity - Answer-In which of the following situations does the internalization theory recommend FDI as opposed to licensing? location-specific advantages - Answer-Advantages that arise from using resource endowments or assets that are tied to a particular place and that a firm finds valuable to combine with its own unique assets (such as the firm's technological, marketing, or management know-how). Free market - Answer-Which view of FDI traces its roots to classical economics and the international trade theories of Adam Smith and David Ricardo? Governments - Answer-Market makers are the financial service companies that connect investors and borrowers. Those who want to borrow money typically include: Debt loan - Answer-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.