Answer FALSE Diff 2 Skill Concept Objective 2 87 Trade between two countries of

Answer false diff 2 skill concept objective 2 87

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Answer: FALSEDiff: 2Skill: ConceptObjective: 287) Trade between two countries of goods produced by the same industry is known as interindustry trade.Answer: FALSEDiff: 1Skill: ConceptObjective: 388) The country similarity theory argues that most trade in manufactured goods should be between countries with similar levels of economic development.Answer: TRUEDiff: 1Skill: ConceptObjective: 3Learning Outcome: Compare and contrast theories of international trade89) According to the international product life cycle theory, domestic production peaks in stage two.Answer: TRUEDiff: 2Skill: ConceptObjective: 3Learning Outcome: Compare and contrast theories of international trade21
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90) According to the international product life cycle theory, the innovating firm's country is primarily an exporter of the product in all three stages.Answer: FALSEDiff: 2Skill: ConceptObjective: 3Learning Outcome: Compare and contrast theories of international trade91) Krugman and Lancaster predict that intraindustry trade will be rare.Answer: FALSEDiff: 2Skill: ConceptObjective: 392) Foreign direct investment is acquisition of foreign assets for the purpose of controlling them.Answer: TRUEDiff: 1Skill: ConceptObjective: 493) China is one of the primary recipients of FDI from the United States.Answer: FALSEDiff: 3Skill: ConceptObjective: 494) Most sovereign wealth funds (SWFs) are owned by oil-rich governments.Answer: TRUEDiff: 2Skill: ConceptObjective: 495) Most of the investments made by sovereign wealth funds (SWFs) have been passive in nature.Answer: TRUEDiff: 1Skill: ConceptObjective: 496) International investment theories answer the question, "Why does foreign direct investment occur?"Answer: TRUEDiff: 1Skill: ConceptObjective: 5Learning Outcome: Explain the implications of foreign direct investment for both host and homecountry22
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97) According to internalization theory, firms are more likely to license their brand names when transaction costs are high.Answer: FALSEDiff: 2Skill: ConceptObjective: 5Learning Outcome: Explain the implications of foreign direct investment for both host and homecountry98) Dunning suggests that FDI will occur when there is an ownership advantage, a location advantage, and an internalization advantage.Answer: TRUEDiff: 1Skill: ConceptObjective: 5Learning Outcome: Explain the implications of foreign direct investment for both host and homecountry99) Heineken has used FDI extensively as part of its internationalization strategy because of the cost of transporting its products.Answer: TRUEDiff: 3Skill: ConceptObjective: 5Learning Outcome: Explain the implications of foreign direct investment for both host and homecountry100) Political factors do not affect a firm's decision to undertake foreign direct investment.
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