(Top 2024/2025 EXAM REVIEW PAPER ) WGU; C200; Global Economics; Chapter 6, Exam Questions and answers, 100% Accurate answers, VERIFIED.

WGU; C200; Global Economics; Chapter 6, Exam Questions and answers, 100% Accurate answers, VERIFIED. Multinational enterprises (MNEs) are: a. firms that engage in foreign acquisitions. b. firms that engage in exporting and importing. c. firms that engage in foreign direct investment (FDI). d. firms that engage in outsourcing. - -firms that engage in foreign direct investment (FDI). Foreign direct investment (FDI) is: a. investment in activities that manage outsourcing. b. investment in activities that control and manage value-added activities in foreign countries. c. investment in activities that manage exporting and importing. d. investment in activities that manage foreign acquisitions. - -investment in activities that control and manage value-added activities in foreign countries. Foreign portfolio investment (FPI) is: a. investment in foreign stocks and bonds that do not involve the active management of foreign assets. b. investment in activities that manage foreign subsidiaries. c. investment in foreign research and development. d. investment in activities that manage foreign acquisitions. - -investment in foreign stocks and bonds that do not involve the active management of foreign assets. Which of the following are examples of ownership, location, and internalization (OLI) advantages? a. All of these b. Possession of valuable foreign assets c. Replacement of cross-border markets with one firm operating in two markets d. Unique natural resources that provide advantages to the firm - -All of these What is one advantage of FDI compared with licensing? a. FDI increases dissemination risks. b. FDI reduces investment costs. c. FDI provides tight control over foreign operations. d. FDI inhibits the transfer of implicit knowledge. - -FDI provides tight control over foreign operations. The advantages of agglomeration result from all of the following EXCEPT: a. A skilled labor force b. Specialized suppliers and buyers c. Knowledge spillovers d. Fewer competitors in the same location - -Fewer competitors in the same location An oligopoly is an: a. industry dominated by one player. b. industry dominated by a small number of customers. c. industry dominated by a small number of competitors. d. industry populated by a large number of players. - -industry dominated by a small number of competitors. The primary political views on FDI are: a. Pragmatic nationalism b. Free market and pragmatic nationalism c. Free market d. Socialist market - -Free market and pragmatic nationalism Some of the benefits of FDI to the host country are: a. Job creation b. All of these c. Advanced technology d. Capital inflow - -All of these In addition to FDI, other ways a firm can enter foreign markets include: a. Import and export b. Outsource c. All of these d. License and trademark - -All of these What is the primary difference between FDI and FPI? a. All of these answers b. FDI is foreign direct investment and FPI is foreign portfolio investment. c. FDI is defined as a 10% or more equity stake and FPI is less than 10%. d. FDI is direct and FPI is indirect. - -All of these answers A mortgage broker that dominates the American Southwest has decided to expand into Mexico and several Central American countries. Its new offices in the host countries offer the same mortgage services as in the home country. This is an example of: a. FPI. b. vertical FDI. c. horizontal FDI. d. management control rights. - -horizontal FDI. A large-scale French dairy that produces milk, cheese, yogurt, and other related products decides to buy a chain of mini-marts located throughout many EU countries. Their objective is to sell their dairy products, as well as other products, through these mini-marts. This is an example of: a. management control rights. b. horizontal FDI. c. vertical FDI. d. FPI. - -vertical FDI. Which three countries invest the most money in other countries (FDI outflow)? a. United States, France, China b. France, Germany, United Kingdom c. United States, France, Germany d. France, Germany, Japan - -United States, France, Germany The three OLI advantages are: a. opportunity, location, internalization. b. ownership, location, internationalization. c. ownership, location, internalization.