A) stock
B) flow
C) outflow
D) trend
E) exchange
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verified
Multiple Choice
A) pragmatic nationalism
B) comparative advantage
C) mercantilism
D) radical view
E) free market
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verified
Multiple Choice
A) presence or threat of trade barriers
B) costs of acquiring a foreign enterprise
C) costs of establishing production facilities in a foreign country
D) risk of giving away valuable technological know-how to a potential foreign competitor
E) possibility of diminishing returns
Correct Answer
verified
Multiple Choice
A) onboard production.
B) offshore production.
C) licensing.
D) contract manufacturing.
E) vertical integration.
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verified
True/False
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verified
True/False
Correct Answer
verified
Multiple Choice
A) comparative advantage theory.
B) distribution theory.
C) new trade approach.
D) market imperfections approach.
E) licensing theory.
Correct Answer
verified
Multiple Choice
A) outsourcing.
B) licensing.
C) franchising.
D) exporting.
E) diversifying.
Correct Answer
verified
Multiple Choice
A) employment effects.
B) balance-of-payments effects.
C) effects on competition.
D) resource-transfer effects.
E) autonomy effects.
Correct Answer
verified
Multiple Choice
A) the disadvantages associated with the adoption of a completely free market view.
B) why different nations import goods from other countries even when they are more capable of producing them efficiently.
C) the preference for FDI over licensing by firms as a strategy to enter foreign markets.
D) the benefits of exercising protectionism coupled with partial adoption of free market approach.
E) the pattern of sale of products from one country to another.
Correct Answer
verified
Multiple Choice
A) unattractiveness in foreign markets.
B) high value-to-weight ratio.
C) high cost of manufacture.
D) low weight-to-value ratio.
E) low value-to-weight ratio.
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verified
Multiple Choice
A) Lack of funds
B) Risk of transaction loss
C) Poor strategic tie-ups
D) Risks of expropriation
E) Losses due to natural calamities
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verified
Essay
Correct Answer
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View Answer
Multiple Choice
A) net value
B) gross national income
C) flow of FDI
D) stock of FDI
E) gross domestic product
Correct Answer
verified
Multiple Choice
A) encourage inward FDI.
B) discourage inward FDI.
C) encourage outward FDI.
D) discourage outward MNE.
E) discourage inward MNE.
Correct Answer
verified
Multiple Choice
A) exporting.
B) licensing.
C) foreign direct investment.
D) greenfield investment.
E) diversifying.
Correct Answer
verified
Multiple Choice
A) a domestic transfer.
B) offshore production.
C) franchising.
D) the difference principle.
E) an acquisition.
Correct Answer
verified
Multiple Choice
A) comparative advantage
B) distribution theory
C) new trade theory
D) internalization theory
E) difference principle
Correct Answer
verified
True/False
Correct Answer
verified
Multiple Choice
A) sharing a valuable technological know-how with a potential competitor.
B) an increase in transportation costs, especially for those products that have a low value-to-weight ratio.
C) doing business in a different culture where the rules of the game may be very different.
D) the possibility of an increase in trade barriers such as import tariffs or quotas.
E) increased production costs.
Correct Answer
verified
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