Quiz 4 GEB 3373 Fall 2011 (1)

Quiz 4 GEB 3373 Fall 2011 (1) - Quiz 4 GEB 3373 Fall 2011...

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Quiz 4 GEB 3373 Fall 2011 1. For statistical purposes, the United Nations defines foreign direct investment as a. a firm with headquarters in country A investing in a smaller firm in country B. b. investment by a government in a foreign private firm. c. investment in foreign stocks and bonds instead of actively managing foreign assets. d. investment involving an equity stake of 10% or more in a foreign enterprise. e. investment in a firm in a bordering country. 2. Foreign portfolio investment is defined as investment in a. foreign stocks and bonds by an agency of the home government.-NOT b. foreign securities that does not entail the active management of foreign assets. c. a foreign enterprise that represents less than 10% of the assets of the home firm.-NOT d. foreign bonds but not foreign stocks. e. foreign stocks but not foreign bonds. 3. FDI in which a firm duplicates its home country-based activities at the same value chain stage in a host country is a. horizontal FDI. b. vertical FDI. c. portfolio FDI. d. value FDI. e. parallel FDI. 4. FDI in which firm moves upstream or downstream in different value chain stages in a host country is known as a. horizontal FDI. b. vertical FDI. c. portfolio FDI. d. diversified FDI. e. slanted FDI. 5. A flow of FDI ______ a time dimension. A flow of portfolio investment ______ a time dimension. a. requires … requires b. requires … does not require-NOT c. does not require … requires- NOT d. does not require … does not require 6. An MNE, by definition, is a firm that engages in _____ when doing business abroad. a. advertising b. portfolio investment c. FDI d. outsourcing e. franchising
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7. Exporting or importing ____ a sufficient condition for being an MNE. Licensing _____ a sufficient condition for being an MNE. a. is … is-NOT b. is … is not-NOT c. is not … is-NOT d. is not … is not 8. A firm that engages in final assembly in the home country and components in the foreign country is undertaking a. downstream horizontal FDI.-NOT b. downstream vertical FDI.-NOT c. upstream horizontal FDI. NOT d. upstream vertical FDI.- 9. A firm that engages in final assembly in the home country and marketing in the foreign country is undertaking a. downstream horizontal FDI. b. downstream vertical FDI. c. upstream horizontal FDI. d. upstream vertical FDI.-NOT 10. Compared to licensing, FDI ______ dissemination risks and _____ the transfer of tacit knowledge. a. reduces … hinders b. reduces … helps c. increases … hinders d. increases … helps 11. Agglomeration refers to a. the added costs of doing business in a foreign location. b. the advantages that arise from clustering economic activities. c. FDI that results in horizontal integration. d. FDI that results in vertical integration.
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This note was uploaded on 02/10/2012 for the course GEB 3373 taught by Professor Crum during the Fall '10 term at University of Florida.

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Quiz 4 GEB 3373 Fall 2011 (1) - Quiz 4 GEB 3373 Fall 2011...

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