BUSMHR 2000 Exam 2 Questions with Correct Answers Graded A+
Foreign Direct Investment - Answers involves direct ownership in productive assets where the MNC has
control over its investment
Flow - Answers amount of FDI over a period of time (one year)
Stock - Answers total accumulated value of foreign owned assets
Outflow - Answers amount of FDI from a country (cumulative, out of a country)
Inflow - Answers amount of FDI entering a country
C - Answers 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
A - Answers Which factor of growth can be described as less trade barriers?
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
B - Answers 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
, D - Answers 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
E - Answers 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
B - Answers Which of the following is not a recent trend in FDI?
A. Developed nations still largest share of FDI inflows
B. Underdeveloped nations have the largest share of FDI outflows
C. Inflows are increasing in developing nations
D. Africa's inability to attract FDI is due to political unrest, armed conflicts, and frequent changes in
economic policies
greenfield investment - Answers establishment of a new operation abroad
acquisition - Answers purchase of an existing operation abroad
40-80 - Answers __-__% is mergers and acquisitions
mergers and acquisitions - Answers ______ is better when investing in a developed country
greenfield investment - Answers ______ is better when investing in a developing country
vertical FDI - Answers firm locates different stages of production in different countries (assembly in one
country, parts from another country, etc.)
Foreign Direct Investment - Answers involves direct ownership in productive assets where the MNC has
control over its investment
Flow - Answers amount of FDI over a period of time (one year)
Stock - Answers total accumulated value of foreign owned assets
Outflow - Answers amount of FDI from a country (cumulative, out of a country)
Inflow - Answers amount of FDI entering a country
C - Answers 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
A - Answers Which factor of growth can be described as less trade barriers?
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
B - Answers 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
, D - Answers 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
E - Answers 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
B - Answers Which of the following is not a recent trend in FDI?
A. Developed nations still largest share of FDI inflows
B. Underdeveloped nations have the largest share of FDI outflows
C. Inflows are increasing in developing nations
D. Africa's inability to attract FDI is due to political unrest, armed conflicts, and frequent changes in
economic policies
greenfield investment - Answers establishment of a new operation abroad
acquisition - Answers purchase of an existing operation abroad
40-80 - Answers __-__% is mergers and acquisitions
mergers and acquisitions - Answers ______ is better when investing in a developed country
greenfield investment - Answers ______ is better when investing in a developing country
vertical FDI - Answers firm locates different stages of production in different countries (assembly in one
country, parts from another country, etc.)
