Global business7 - The correct answer for each question is...

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1 CORRECT A Greenfield investment involves the establishment of new operations in a foreign country. A) True B) False 2 INCORRECT The relationship between Kodak and Fuji Photo Film Co is an example of multipoint competition. A) True B) False 3 INCORRECT Vernon's theory is a powerful one because it explains why a firm undertakes FDI rather than continuing to export from its home base or entering into a licensing arrangement. A) True B) False 4 CORRECT If Kia Auto were to enter the Canadian market by acquiring a large number of dealers rather than distributing its cars through independent U.S. dealers, Kia's actions would be a form of backward vertical FDI. A) True B) False 5 CORRECT In contrast to the market imperfections approach, the product life cycle theory and Knickerbocker's theory of horizontal FDI have proven to be
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powerful predictors of the factors that influence the relative profitability of FDI, licensing, and exporting. A) True B) False 6 CORRECT ________ occurs when a firm invests directly in facilities to produce and/or market a product in a foreign country. A) portfolio investment B) foreign direct investment C) international investment D) transnational investment 7 INCORRECT
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This note was uploaded on 06/05/2010 for the course BAUD 5266 taught by Professor Beldona during the Spring '10 term at University of Arkansas for Medical Sciences.

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Global business7 - The correct answer for each question is...

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