What are the benefits of FDI to home countries?

1. Q. The primary costs of FDI to host countries are:

. Loss of sovereignty and patriotism

. adverse effects on competition and exports

. capital outflow

. loss of sovereignty, adverse effects on competition, and capital outflow

 

2. Q. ______ suggests that FDI , unrestricted by government intervention, will enable countries to tap into their absolute or comparative advantage by specializing in the production of certain goods or services.

. the radical view

. the free market view

. pragmatic nationalism

. expropriation

 

3. Q. What are the benefits of FDI to home countries?

. rpatriated earnings from profits from FDI

. increased exports of components and services to host countries.

.learning via FDI from operations abroad

. all of these answers.

 

4 Q. when one firm enters a foreign country through FDI, its rivals are likely to follow by undertaking additional FDI in a host country to:

. create knowledge spillover

.discover a new market for its goods

. overcome and combat market failure throught FDI

. acquire location advantages or neutralize the first mover’s location advantages

 

5 Q. most countries practice:

.pragmatic nationalism

.free market based FDI

.government embracing radical view

.french patriotism

 

6Q. FDI may be viewed as a reflection of firm motivation to extend firm-specific capabilities abroad and their response to overcome imperfections and failures.

. true

.false

 

7Q. most countries practice a totally”free market” view.

. true

. false

 

8Q. Outsourcing is the process of turning over an organizational activity to an outside supplier, located in a foreign country, which will perform it on behalf of the local firm.

.true

.false

 

9.Q. financial, physical, and technological resources and capabilities are all tangible assets.

.true

.false

 

10. Q a. firm’s resources and capabilities are tangile assests a firm use to choose and implement its strategies.

.true

.false