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Chapter 17 - Chapter 17 Corporate Strategy and Foreign...

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Chapter 17 Corporate Strategy and Foreign Direct Investment 1. The United States Department of Commerce defines foreign direct investment as investment in either real capital assets or financial assets with a minimum of % equity ownership in a foreign firm. * A. 10 B. 20 C. 30 D. 50 E. 60 2. Which of the following is not an oligopoly-created advantage of foreign direct investment for investing companies? * 3. Which of the following is not directly related to benefits of foreign direct investment to host countries? * 4. Which of the following is not part of the argument against foreign investment for host countries? * 5. Which of the following is not an advantage of foreign licensing arrangement over foreign investment? A. licensing requires a relatively small amount of investment B. licensing has relatively lower risk C. companies obtain an opportunity to penetrate foreign markets. * D. licensing may create a possible competitor E. licensing is an easy way to circumvent foreign government restrictions
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