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Exam (elaborations)

BUSI 3250 AUBURN EXAM 1 BRAND NEW OFFICIAL QUESTIONS WITH ANSWERS.

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BUSI 3250 AUBURN EXAM 1 BRAND NEW OFFICIAL QUESTIONS WITH ANSWERS.

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BUSI 3250 AUBURN
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October 4, 2025
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BUSI 3250 AUBURN EXAM
1 BRAND NEW OFFICIAL
QUESTIONS WITH ANSWERS.

Greenfield Investment - correct answer -the establishment of new
facilities from the ground up




Cross-border acquistion - correct answer -the purchase of an
existing business in another faction




Theories of foreign direct investment (FDI) - correct answer -
monopolistic advantage theory


Strategic behavior theory


Internalization theory


Dynamic capabilities theory


Eclectic theory of international production

, Page | 2



Most widely accepted theory of FDI - correct answer -Eclectic
Theory of International Production




3 advantages needed for a firm to invest in facilities overseas: -
correct answer -ownership - specific advantage


Location - specific advantage


International advantage




Culture - correct answer -the sum total of beliefs, rules,
techniques, institutions and artifacts that characterize human
populations




Ethnocentricity - correct answer -the belief that your own culture is
superior to other cultures




Four Frameworks for Analyzing Culture - correct answer -Halls
High and Low Context
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