Question 1 Multiple Choice 0 of 1 point(s)
The most common performance requirements that are intended to restrict inward FDI are related to local content, exports, local participation in top management, and:
Your Answer: expatriation of earnings
Correct Answer: technology transfer
Feedback: Difficulty: MediumPage: 256
Question 2 Multiple Choice 1 of 1 point(s)
It is increasingly common for governments to:
Your Answer: offer incentives to firms that invest in their countries
Correct Answer: offer incentives to firms that invest in their countries
Feedback: Difficulty: MediumPage: 255
Question 3 True/False 0 of 1 point(s)
Performance requirements are controls over the behavior of the MNE's local subsidiary.
Your Answer: false
Correct Answer: true
Feedback: Difficulty: MediumPage: 256
Question 4 True/False 1 of 1 point(s)
The free market view argues that international production should be distributed among countries according to the theory of comparative advantage.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 241
Question 5 Multiple Choice 0 of 1 point(s)
Until the collapse of communism between 1989 and 1991, the countries of Eastern Europe were:
Your Answer: ambivalent about FDI
Correct Answer: opposed to FDI
Feedback: Difficulty: MediumPage: 241
Question 6 Multiple Choice 0 of 1 point(s)
The radical ideology of FDI has the following characteristics:
Your Answer: views FDI as having both benefits and costs; classical economic roots
Correct Answer: Marxist roots; views the MNE as an instrument of imperialist domination
Feedback: Difficulty: MediumPage: 244
Question 7 True/False 0 of 1 point(s)
The four main benefits of FDI for a host country include the resource-transfer effect, the employment effect, the balance-of payments effect, and the effect on competition and economic growth.
Your Answer: false
Correct Answer: true
Feedback: Difficulty: MediumPage: 244
Question 8 Multiple Choice 0 of 1 point(s)
The only way in which a current account deficit can be supported in the long run is by:
Your Answer: selling off assets to local companies.
Correct Answer: selling off assets to foreigners.
Feedback: Difficulty: MediumPage: 249
Question 9 Multiple Choice 0 of 1 point(s)
Countries have been known to occasionally manipulate _______ to try to encourage their firms to invest at home.
Your Answer: environmental rules
Correct Answer: tax rules
Feedback: Difficulty: MediumPage: 255
Question 10 Multiple Choice 0 of 1 point(s)
The beneficial effects of FDI may be reduced if most management positions and highly skilled jobs in the subsidiaries of foreign firms are reserved for _______ nationals.
Your Answer: host-country
Correct Answer: home-country
Feedback: Difficulty: MediumPage: 246
Question 1 Multiple Choice 1 of 1 point(s)
Many investor nations now have government backed insurance programs to cover major types of foreign investment risk. The types of risks insurable through these programs include all of the following except:
Your Answer: strategic business blunders
Correct Answer: strategic business blunders
Feedback: Difficulty: MediumPage: 254
Question 2 Multiple Choice 1 of 1 point(s)
The only way in which a current account deficit can be supported in the long run is by:
Your Answer: selling off assets to foreigners.
Correct Answer: selling off assets to foreigners.
Feedback: Difficulty: MediumPage: 249
Question 3 True/False 0 of 1 point(s)
According to the pragmatic nationalist view, FDI should only be undertaken if the benefits outweigh the costs.
Your Answer: false
Correct Answer: true
Feedback: Difficulty: MediumPage: 242
Question 4 True/False 1 of 1 point(s)
Foreign management skills acquired through FDI may produce important benefits for the host country.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 246
Question 5 True/False 1 of 1 point(s)
Virtually all investor countries, including the U.S., have exercised some control over outward FDI from time to time.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 254
Question 6 Multiple Choice 1 of 1 point(s)
Until the collapse of communism between 1989 and 1991, the countries of Eastern Europe were:
Your Answer: opposed to FDI
Correct Answer: opposed to FDI
Feedback: Difficulty: MediumPage: 241
Question 7 Multiple Choice 0 of 1 point(s)
Countries have been known to occasionally manipulate _______ to try to encourage their firms to invest at home.
Your Answer: environmental rules
Correct Answer: tax rules
Feedback: Difficulty: MediumPage: 255
Question 8 Multiple Choice 0 of 1 point(s)
The Japanese government has insisted in the past that technology be transferred to Japan through __________, rather than FDI.
Your Answer: diplomatic channels
Correct Answer: licensing
Feedback: Difficulty: MediumPage: 245
Question 9 True/False 0 of 1 point(s)
The four main benefits of FDI for a host country include the resource-transfer effect, the employment effect, the balance-of payments effect, and the effect on competition and economic growth.
Your Answer: false
Correct Answer: true
Feedback: Difficulty: MediumPage: 244
Question 10 Multiple Choice 0 of 1 point(s)
Which of the following is not one of the reasons that by the end of the 1980s, the radical position was in retreat almost everywhere in the world?
Your Answer: The collapse of communism in Eastern Europe
Correct Answer: Lobbying efforts on the part of the United Nations in favor of FDI
Feedback: Difficulty: MediumPage: 241
Question 1 True/False 0 of 1 point(s)
Flexible interest rates and loans are the most common incentives governments offer to get foreign firms to invest in their countries.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 255
Question 2 True/False 1 of 1 point(s)
From 1945 until the 1980s, the free market view was very influential in the world economy.
Your Answer: false
Correct Answer: false
Feedback: Difficulty: MediumPage: 241
Question 3 True/False 1 of 1 point(s)
Virtually all investor countries, including the U.S., have exercised some control over outward FDI from time to time.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 254
Question 4 Multiple Choice 0 of 1 point(s)
Under the auspices of the __________, two extensive multinational agreements were reached in 1997 to liberalize trade in telecommunications and financial services.
Your Answer: International Manufacturing and Services Monitoring Commission
Correct Answer: World Trade Organization
Feedback: Difficulty: MediumPage: 256
Question 5 Multiple Choice 1 of 1 point(s)
"FDI can make a positive contribution to a host country by supplying capital, technology, and management skills that would not otherwise be available." This statement best describes the:
Your Answer: resource transfer effect
Correct Answer: resource transfer effect
Feedback: Difficulty: MediumPage: 244
Question 6 Multiple Choice 0 of 1 point(s)
Which of the following is not a policy designed to encourage FDI?
Your Answer: Tax incentives
Correct Answer: The manipulation of tax rules to try to encourage investment at home
Feedback: Difficulty: MediumPage: 254
Question 7 True/False 1 of 1 point(s)
The free market view argues that international production should be distributed among countries according to the theory of comparative advantage.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 241
Question 8 True/False 0 of 1 point(s)
According to the pragmatic nationalist view, FDI should only be undertaken if the benefits outweigh the costs.
Your Answer: false
Correct Answer: true
Feedback: Difficulty: MediumPage: 242
Question 9 Multiple Choice 0 of 1 point(s)
The basic principle of balance-of-payments accounting is:
Your Answer: single-entry bookkeeping
Correct Answer: double-entry bookkeeping
Feedback: Difficulty: MediumPage: 248
Question 10 Multiple Choice 0 of 1 point(s)
The free market ideology of FDI has the following characteristics:
Your Answer: views the MNE as an instrument of imperialist domination, views FDI as having both benefits and costs
Correct Answer: classical economic roots; views the MNE as an instrument for allocating production to most efficient locations
Feedback: Difficulty: MediumPage: 244
Question 1 True/False 0 of 1 point(s)
To a greater or lesser degree, the officials of many governments tend to be free market advocates who weigh the benefits and costs of FDI and typically lean in favor of liberal FDI policies.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 240
Question 2 True/False 0 of 1 point(s)
Few MNEs, despite their large size and financial strength, have access to the same level of financial resources as host-country firms.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 245
Question 3 True/False 0 of 1 point(s)
Many investor nations have government-backed insurance programs to cover major types of foreign investment risk.
Your Answer: false
Correct Answer: true
Feedback: Difficulty: MediumPage: 254
Question 4 Multiple Choice 0 of 1 point(s)
A __________ occurs when a country exports more goods, services, and income than it imports.
Your Answer: debit account surplus
Correct Answer: current account surplus
Feedback: Difficulty: MediumPage: 248
Question 5 Multiple Choice 0 of 1 point(s)
When capital flows out of the United States, it enters the _______ account as a ______.
Your Answer: current, credit
Correct Answer: capital, debit
Feedback: Difficulty: MediumPage: 248
Question 6 Multiple Choice 0 of 1 point(s)
The Japanese government has insisted in the past that technology be transferred to Japan through __________, rather than FDI.
Your Answer: exporting
Correct Answer: licensing
Feedback: Difficulty: MediumPage: 245
Question 7 Multiple Choice 0 of 1 point(s)
The radical ideology of FDI has the following characteristics:
Your Answer: views FDI as having both benefits and costs; classical economic roots
Correct Answer: Marxist roots; views the MNE as an instrument of imperialist domination
Feedback: Difficulty: MediumPage: 244
Question 8 Multiple Choice 0 of 1 point(s)
The pragmatic nationalism ideology has the following host-government policy implications:
Your Answer: prohibit FDI; nationalize subsidiaries of foreign-owned MNEs
Correct Answer: restrict FDI where costs outweigh benefits; bargain for greater benefits and fewer costs; aggressively court beneficial FDI by offering incentives
Feedback: Difficulty: MediumPage: 244
Question 9 Multiple Choice 0 of 1 point(s)
If a U.S. citizen owns a share of a Finnish company and receives a dividend payment of $5, that payment shows up on:
Your Answer: the Finnish current account as the receipt of $5 of investment income
Correct Answer: the U.S. current account as the receipt of $5 of investment income
Feedback: Difficulty: MediumPage: 248
Question 10 Multiple Choice 0 of 1 point(s)
Many investor nations now have government backed insurance programs to cover major types of foreign investment risk. The types of risks insurable through these programs include all of the following except:
Your Answer: the risk of expropriation
Correct Answer: strategic business blunders
Feedback: Difficulty: MediumPage: 254
Question 1 True/False 1 of 1 point(s)
Performance requirements are controls over the behavior of the MNE's local subsidiary.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 256
Question 2 Multiple Choice 1 of 1 point(s)
The free market ideology of FDI has the following characteristics:
Your Answer: classical economic roots; views the MNE as an instrument for allocating production to most efficient locations
Correct Answer: classical economic roots; views the MNE as an instrument for allocating production to most efficient locations
Feedback: Difficulty: MediumPage: 244
Question 3 Multiple Choice 1 of 1 point(s)
The most common performance requirements that are intended to restrict inward FDI are related to local content, exports, local participation in top management, and:
Your Answer: technology transfer
Correct Answer: technology transfer
Feedback: Difficulty: MediumPage: 256
Question 4 Multiple Choice 0 of 1 point(s)
The radical ideology has the following host-government policy implications:
Your Answer: no restrictions on FDI
Correct Answer: prohibit FDI; nationalize subsidiaries of foreign-owned FDI
Feedback: Difficulty: MediumPage: 244
Question 5 True/False 0 of 1 point(s)
Regarding FDI, many host governments are concerned that key decisions that can affect the host country's economy will be made by locals instead of foreign parent.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 252
Question 6 Multiple Choice 0 of 1 point(s)
"FDI should be allowed only if the benefits outweigh the costs" is the view espoused by which policy?
Your Answer: Radical
Correct Answer: Pragmatic nationalism
Feedback: Difficulty: MediumPage: 242
Question 7 True/False 0 of 1 point(s)
In regard to host-government policy implications, the free market view is the only view that prohibits FDI.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 240
Question 8 Multiple Choice 1 of 1 point(s)
The MNE is seen as an instrument for dispersing the production of goods and services to those locations around the globe where they can be produced most efficiently, according to the _______ view.
Your Answer: free market
Correct Answer: free market
Feedback: Difficulty: MediumPage: 241
Question 9 Multiple Choice 1 of 1 point(s)
In practice, many countries have adopted neither a radical policy nor a free market policy toward FDI, but instead a policy that can best be described as:
Your Answer: pragmatic nationalism
Correct Answer: pragmatic nationalism
Feedback: Difficulty: MediumPage: 242
Question 10 Multiple Choice 1 of 1 point(s)
The beneficial employment effects claimed for FDI is that it:
Your Answer: brings jobs to a host country that would otherwise not be created there
Correct Answer: brings jobs to a host country that would otherwise not be created there
Feedback: Difficulty: MediumPage: 246
Question 1 Multiple Choice 0 of 1 point(s)
In recent years the Japanese government has pressured many Japanese firms to undertake FDI in order to:
Your Answer: improve its trade balance
Correct Answer: reduce its balance of payments surplus
Feedback: Difficulty: MediumPage: 240
Question 2 Multiple Choice 1 of 1 point(s)
The free market ideology of FDI has the following characteristics:
Your Answer: classical economic roots; views the MNE as an instrument for allocating production to most efficient locations
Correct Answer: classical economic roots; views the MNE as an instrument for allocating production to most efficient locations
Feedback: Difficulty: MediumPage: 244
Question 3 True/False 1 of 1 point(s)
In regard to host-government policy implications, the free market view is the only view that prohibits FDI.
Your Answer: false
Correct Answer: false
Feedback: Difficulty: MediumPage: 240
Question 4 Multiple Choice 0 of 1 point(s)
The __________ view traces its roots to classical economics and the international trade theories of Adam Smith and David Ricardo.
Your Answer: radical
Correct Answer: free market
Feedback: Difficulty: MediumPage: 241
Question 5 Multiple Choice 1 of 1 point(s)
The Japanese government has insisted in the past that technology be transferred to Japan through __________, rather than FDI.
Your Answer: licensing
Correct Answer: licensing
Feedback: Difficulty: MediumPage: 245
Question 6 True/False 1 of 1 point(s)
The capital account of a home country's balance of payments benefits from the inward flow of foreign earnings.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 253
Question 7 True/False 0 of 1 point(s)
Host governments use a wide range of controls to restrict FDI in one way or another. The two most common are ownership restraints and geographic restraints.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 255
Question 8 Multiple Choice 1 of 1 point(s)
Balance-of-payment accounts are divided into two main sections. These are:
Your Answer: the current account and the capital account
Correct Answer: the current account and the capital account
Feedback: Difficulty: MediumPage: 248
Question 9 Multiple Choice 0 of 1 point(s)
The Japanese government sees __________ as a substitute for exporting and thus as a way of reducing Japan's politically embarrassing balance of payments surplus.
Your Answer: licensing
Correct Answer: foreign direct investment
Feedback: Difficulty: MediumPage: 240
Question 10 True/False 1 of 1 point(s)
According to the pragmatic nationalist view, FDI should only be undertaken if the benefits outweigh the costs.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 242
Question 1 Multiple Choice 0 of 1 point(s)
A distinctive aspect of __________ is the tendency to aggressively court FDI believed to be in the national interest by, for example, offering subsidies to foreign MNEs in the form of tax breaks or grants.
Your Answer: the radical view
Correct Answer: pragmatic nationalism
Feedback: Difficulty: MediumPage: 242
Question 2 True/False 1 of 1 point(s)
Two of the advantages of FDI to home countries are positive employment effects and positive impact on balance-of-payments.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 253
Question 3 Multiple Choice 1 of 1 point(s)
The Japanese government has insisted in the past that technology be transferred to Japan through __________, rather than FDI.
Your Answer: licensing
Correct Answer: licensing
Feedback: Difficulty: MediumPage: 245
Question 4 Multiple Choice 1 of 1 point(s)
What is the record of a country's transactions pertaining to merchandise trade, services, and investment income?
Your Answer: Current account
Correct Answer: Current account
Feedback: Difficulty: MediumPage: 248
Question 5 True/False 1 of 1 point(s)
In regard to host-government policy implications, the free market view is the only view that prohibits FDI.
Your Answer: false
Correct Answer: false
Feedback: Difficulty: MediumPage: 240
Question 6 Multiple Choice 0 of 1 point(s)
Within the free market framework, the MNE is:
Your Answer: an instrument that fails to distinguish between efficient locations and inefficient locations for the production of goods and services around the world
Correct Answer: an instrument for dispersing the production of goods and services to the most efficient locations around the globe
Feedback: Difficulty: MediumPage: 241
Question 7 True/False 0 of 1 point(s)
In the context of international trade double, taxation refers to fact that in many foreign countries, FDI is taxed at double the domestic rate.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 254
Question 8 True/False 1 of 1 point(s)
The four main benefits of FDI for a host country include the resource-transfer effect, the employment effect, the balance-of payments effect, and the effect on competition and economic growth.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 244
Question 9 Multiple Choice 0 of 1 point(s)
Which of the following is not one of the benefits of FDI to the home country?
Your Answer: Positive employment effects
Correct Answer: Negative interest rates effect
Feedback: Difficulty: MediumPage: 253
Question 10 True/False 1 of 1 point(s)
Host governments use a wide range of controls to restrict FDI in one way or another. The two most common are ownership restraints and geographic restraints.
Your Answer: false
Correct Answer: false
Feedback: Difficulty: MediumPage: 255
Question 1 Multiple Choice 1 of 1 point(s)
Under the auspices of the __________, two extensive multinational agreements were reached in 1997 to liberalize trade in telecommunications and financial services.
Your Answer: World Trade Organization
Correct Answer: World Trade Organization
Feedback: Difficulty: MediumPage: 256
Question 2 Multiple Choice 0 of 1 point(s)
Performance requirements are controls over the behavior of the MNE's:
Your Answer: employees
Correct Answer: local subsidiary
Feedback: Difficulty: MediumPage: 256
Question 3 Multiple Choice 1 of 1 point(s)
Until recently, there has been no consistent involvement by multinational institutions in the governing of FDI. This is now changing rapidly with the formation of the __________ in 1995.
Your Answer: World Trade Organization
Correct Answer: World Trade Organization
Feedback: Difficulty: MediumPage: 256
Question 4 Multiple Choice 1 of 1 point(s)
Until the collapse of communism between 1989 and 1991, the countries of Eastern Europe were:
Your Answer: opposed to FDI
Correct Answer: opposed to FDI
Feedback: Difficulty: MediumPage: 241
Question 5 Multiple Choice 1 of 1 point(s)
A __________ occurs when a country imports more goods, services, and income than it exports.
Your Answer: current account deficit
Correct Answer: current account deficit
Feedback: Difficulty: MediumPage: 248
Question 6 True/False 1 of 1 point(s)
Virtually all investor countries, including the U.S., have exercised some control over outward FDI from time to time.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 254
Question 7 Multiple Choice 0 of 1 point(s)
The free market view argues that international production should be distributed among countries according to the theory of:
Your Answer: absolute advantage
Correct Answer: comparative advantage
Feedback: Difficulty: MediumPage: 241
Question 8 True/False 1 of 1 point(s)
The four main benefits of FDI for a host country include the resource-transfer effect, the employment effect, the balance-of payments effect, and the effect on competition and economic growth.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 244
Question 9 Multiple Choice 0 of 1 point(s)
Many investor nations now have government backed insurance programs to cover major types of foreign investment risk. The types of risks insurable through these programs include all of the following except:
Your Answer: war losses
Correct Answer: strategic business blunders
Feedback: Difficulty: MediumPage: 254
Question 10 Multiple Choice 1 of 1 point(s)
The free market ideology of FDI has the following characteristics:
Your Answer: classical economic roots; views the MNE as an instrument for allocating production to most efficient locations
Correct Answer: classical economic roots; views the MNE as an instrument for allocating production to most efficient locations
Feedback: Difficulty: MediumPage: 244
Question 1 Multiple Choice 1 of 1 point(s)
A distinctive aspect of __________ is the tendency to aggressively court FDI believed to be in the national interest by, for example, offering subsidies to foreign MNEs in the form of tax breaks or grants.
Your Answer: pragmatic nationalism
Correct Answer: pragmatic nationalism
Feedback: Difficulty: MediumPage: 242
Question 2 Multiple Choice 1 of 1 point(s)
The radical ideology has the following host-government policy implications:
Your Answer: prohibit FDI; nationalize subsidiaries of foreign-owned FDI
Correct Answer: prohibit FDI; nationalize subsidiaries of foreign-owned FDI
Feedback: Difficulty: MediumPage: 244
Question 3 Multiple Choice 1 of 1 point(s)
Under the auspices of the __________, two extensive multinational agreements were reached in 1997 to liberalize trade in telecommunications and financial services.
Your Answer: World Trade Organization
Correct Answer: World Trade Organization
Feedback: Difficulty: MediumPage: 256
Question 4 Multiple Choice 1 of 1 point(s)
The MNE is seen as an instrument for dispersing the production of goods and services to those locations around the globe where they can be produced most efficiently, according to the _______ view.
Your Answer: free market
Correct Answer: free market
Feedback: Difficulty: MediumPage: 241
Question 5 True/False 1 of 1 point(s)
Many investor nations have government-backed insurance programs to cover major types of foreign investment risk.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 254
Question 6 Multiple Choice 0 of 1 point(s)
According to the __________ view of FDI, MNEs extract profits from the host country and take them to their home country, giving nothing of value to the host country in exchange.
Your Answer: conservative
Correct Answer: radical
Feedback: Difficulty: MediumPage: 240
Question 7 Multiple Choice 1 of 1 point(s)
A __________ occurs when a country exports more goods, services, and income than it imports.
Your Answer: current account surplus
Correct Answer: current account surplus
Feedback: Difficulty: MediumPage: 248
Question 8 Multiple Choice 1 of 1 point(s)
Many investor nations now have government backed insurance programs to cover major types of foreign investment risk. The types of risks insurable through these programs include all of the following except:
Your Answer: strategic business blunders
Correct Answer: strategic business blunders
Feedback: Difficulty: MediumPage: 254
Question 9 True/False 0 of 1 point(s)
Many countries have a pragmatic stance toward FDI, despite the move towards a free market stance in recent years.
Your Answer: false
Correct Answer: true
Feedback: Difficulty: MediumPage: 257
Question 10 Multiple Choice 1 of 1 point(s)
A __________ occurs when a country imports more goods, services, and income than it exports.
Your Answer: current account deficit
Correct Answer: current account deficit
Feedback: Difficulty: MediumPage: 248
Question 1 Multiple Choice 1 of 1 point(s)
The basic principle of balance-of-payments accounting is:
Your Answer: double-entry bookkeeping
Correct Answer: double-entry bookkeeping
Feedback: Difficulty: MediumPage: 248
Question 2 Multiple Choice 1 of 1 point(s)
The free market ideology of FDI has the following characteristics:
Your Answer: classical economic roots; views the MNE as an instrument for allocating production to most efficient locations
Correct Answer: classical economic roots; views the MNE as an instrument for allocating production to most efficient locations
Feedback: Difficulty: MediumPage: 244
Question 3 Multiple Choice 1 of 1 point(s)
In practice, many countries have adopted neither a radical policy nor a free market policy toward FDI, but instead a policy that can best be described as:
Your Answer: pragmatic nationalism
Correct Answer: pragmatic nationalism
Feedback: Difficulty: MediumPage: 242
Question 4 True/False 1 of 1 point(s)
In the context of international trade double, taxation refers to fact that in many foreign countries, FDI is taxed at double the domestic rate.
Your Answer: false
Correct Answer: false
Feedback: Difficulty: MediumPage: 254
Question 5 True/False 1 of 1 point(s)
Foreign management skills acquired through FDI may produce important benefits for the host country.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 246
Question 6 True/False 1 of 1 point(s)
Regarding FDI, many host governments are concerned that key decisions that can affect the host country's economy will be made by locals instead of foreign parent.
Your Answer: false
Correct Answer: false
Feedback: Difficulty: MediumPage: 252
Question 7 True/False 1 of 1 point(s)
Few MNEs, despite their large size and financial strength, have access to the same level of financial resources as host-country firms.
Your Answer: false
Correct Answer: false
Feedback: Difficulty: MediumPage: 245
Question 8 Multiple Choice 1 of 1 point(s)
What is the record of a country's transactions pertaining to merchandise trade, services, and investment income?
Your Answer: Current account
Correct Answer: Current account
Feedback: Difficulty: MediumPage: 248
Question 9 Multiple Choice 0 of 1 point(s)
Performance requirements are controls over the behavior of the MNE's:
Your Answer: home government
Correct Answer: local subsidiary
Feedback: Difficulty: MediumPage: 256
Question 10 True/False 1 of 1 point(s)
The four main benefits of FDI for a host country include the resource-transfer effect, the employment effect, the balance-of payments effect, and the effect on competition and economic growth.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 244
Question 1 True/False 0 of 1 point(s)
Regarding FDI, many host governments are concerned that key decisions that can affect the host country's economy will be made by locals instead of foreign parent.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 252
Question 2 Multiple Choice 1 of 1 point(s)
The radical ideology of FDI has the following characteristics:
Your Answer: Marxist roots; views the MNE as an instrument of imperialist domination
Correct Answer: Marxist roots; views the MNE as an instrument of imperialist domination
Feedback: Difficulty: MediumPage: 244
Question 3 True/False 0 of 1 point(s)
Few MNEs, despite their large size and financial strength, have access to the same level of financial resources as host-country firms.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 245
Question 4 Multiple Choice 1 of 1 point(s)
The radical ideology has the following host-government policy implications:
Your Answer: prohibit FDI; nationalize subsidiaries of foreign-owned FDI
Correct Answer: prohibit FDI; nationalize subsidiaries of foreign-owned FDI
Feedback: Difficulty: MediumPage: 244
Question 5 True/False 1 of 1 point(s)
The capital account of a home country's balance of payments benefits from the inward flow of foreign earnings.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 253
Question 6 Multiple Choice 1 of 1 point(s)
The beneficial employment effects claimed for FDI is that it:
Your Answer: brings jobs to a host country that would otherwise not be created there
Correct Answer: brings jobs to a host country that would otherwise not be created there
Feedback: Difficulty: MediumPage: 246
Question 7 True/False 1 of 1 point(s)
From 1945 until the 1980s, the free market view was very influential in the world economy.
Your Answer: false
Correct Answer: false
Feedback: Difficulty: MediumPage: 241
Question 8 Multiple Choice 1 of 1 point(s)
A distinctive aspect of __________ is the tendency to aggressively court FDI believed to be in the national interest by, for example, offering subsidies to foreign MNEs in the form of tax breaks or grants.
Your Answer: pragmatic nationalism
Correct Answer: pragmatic nationalism
Feedback: Difficulty: MediumPage: 242
Question 9 Multiple Choice 1 of 1 point(s)
The __________ records transactions that involve the purchase or sale of assets.
Your Answer: capital account
Correct Answer: capital account
Feedback: Difficulty: MediumPage: 248
Question 10 Multiple Choice 1 of 1 point(s)
The only way in which a current account deficit can be supported in the long run is by:
Your Answer: selling off assets to foreigners.
Correct Answer: selling off assets to foreigners.
Feedback: Difficulty: MediumPage: 249
Question 1 Multiple Choice 1 of 1 point(s)
Many investor nations now have government backed insurance programs to cover major types of foreign investment risk. The types of risks insurable through these programs include all of the following except:
Your Answer: strategic business blunders
Correct Answer: strategic business blunders
Feedback: Difficulty: MediumPage: 254
Question 2 Multiple Choice 0 of 1 point(s)
Regarding the costs of FDI for the home country, the most important concerns center around:
Your Answer: the resource transfer effect and the inflationary pressures caused by FDI
Correct Answer: the balance-of-payments and employment effects of outward FDI
Feedback: Difficulty: MediumPage: 253
Question 3 Multiple Choice 1 of 1 point(s)
The basic principle of balance-of-payments accounting is:
Your Answer: double-entry bookkeeping
Correct Answer: double-entry bookkeeping
Feedback: Difficulty: MediumPage: 248
Question 4 Multiple Choice 1 of 1 point(s)
A distinctive aspect of __________ is the tendency to aggressively court FDI believed to be in the national interest by, for example, offering subsidies to foreign MNEs in the form of tax breaks or grants.
Your Answer: pragmatic nationalism
Correct Answer: pragmatic nationalism
Feedback: Difficulty: MediumPage: 242
Question 5 Multiple Choice 1 of 1 point(s)
The beneficial employment effects claimed for FDI is that it:
Your Answer: brings jobs to a host country that would otherwise not be created there
Correct Answer: brings jobs to a host country that would otherwise not be created there
Feedback: Difficulty: MediumPage: 246
Question 6 Multiple Choice 1 of 1 point(s)
If a U.S. citizen owns a share of a Finnish company and receives a dividend payment of $5, that payment shows up on:
Your Answer: the U.S. current account as the receipt of $5 of investment income
Correct Answer: the U.S. current account as the receipt of $5 of investment income
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Question 7 Multiple Choice 1 of 1 point(s)
The most common performance requirements that are intended to restrict inward FDI are related to local content, exports, local participation in top management, and:
Your Answer: technology transfer
Correct Answer: technology transfer
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Question 8 Multiple Choice 0 of 1 point(s)
The Japanese government sees __________ as a substitute for exporting and thus as a way of reducing Japan's politically embarrassing balance of payments surplus.
Your Answer: licensing
Correct Answer: foreign direct investment
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Question 9 Multiple Choice 1 of 1 point(s)
The __________ records transactions that involve the purchase or sale of assets.
Your Answer: capital account
Correct Answer: capital account
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Question 10 True/False 1 of 1 point(s)
Many investor nations have government-backed insurance programs to cover major types of foreign investment risk.
Your Answer: true
Correct Answer: true
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Question 1 True/False 1 of 1 point(s)
Virtually all investor countries, including the U.S., have exercised some control over outward FDI from time to time.
Your Answer: true
Correct Answer: true
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Question 2 Multiple Choice 1 of 1 point(s)
In practice, many countries have adopted neither a radical policy nor a free market policy toward FDI, but instead a policy that can best be described as:
Your Answer: pragmatic nationalism
Correct Answer: pragmatic nationalism
Feedback: Difficulty: MediumPage: 242
Question 3 Multiple Choice 1 of 1 point(s)
Until the collapse of communism between 1989 and 1991, the countries of Eastern Europe were:
Your Answer: opposed to FDI
Correct Answer: opposed to FDI
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Question 4 Multiple Choice 1 of 1 point(s)
If a U.S. citizen owns a share of a Finnish company and receives a dividend payment of $5, that payment shows up on:
Your Answer: the U.S. current account as the receipt of $5 of investment income
Correct Answer: the U.S. current account as the receipt of $5 of investment income
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Question 5 True/False 1 of 1 point(s)
The four main benefits of FDI for a host country include the resource-transfer effect, the employment effect, the balance-of payments effect, and the effect on competition and economic growth.
Your Answer: true
Correct Answer: true
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Question 6 True/False 1 of 1 point(s)
Few MNEs, despite their large size and financial strength, have access to the same level of financial resources as host-country firms.
Your Answer: false
Correct Answer: false
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Question 7 Multiple Choice 1 of 1 point(s)
The MNE is seen as an instrument for dispersing the production of goods and services to those locations around the globe where they can be produced most efficiently, according to the _______ view.
Your Answer: free market
Correct Answer: free market
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Question 8 Multiple Choice 0 of 1 point(s)
Radical writers argue that the multinational enterprise is an instrument of:
Your Answer: free market expansionism
Correct Answer: imperialist domination
Feedback: Difficulty: MediumPage: 240
Question 9 Multiple Choice 1 of 1 point(s)
The beneficial employment effects claimed for FDI is that it:
Your Answer: brings jobs to a host country that would otherwise not be created there
Correct Answer: brings jobs to a host country that would otherwise not be created there
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Question 10 Multiple Choice 1 of 1 point(s)
"FDI can make a positive contribution to a host country by supplying capital, technology, and management skills that would not otherwise be available." This statement best describes the:
Your Answer: resource transfer effect
Correct Answer: resource transfer effect
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Question 1 Multiple Choice 1 of 1 point(s)
A __________ occurs when a country exports more goods, services, and income than it imports.
Your Answer: current account surplus
Correct Answer: current account surplus
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Question 2 True/False 1 of 1 point(s)
Regarding FDI, many host governments are concerned that key decisions that can affect the host country's economy will be made by locals instead of foreign parent.
Your Answer: false
Correct Answer: false
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Question 3 Multiple Choice 1 of 1 point(s)
Which of the following is not one of the reasons that by the end of the 1980s, the radical position was in retreat almost everywhere in the world?
Your Answer: Lobbying efforts on the part of the United Nations in favor of FDI
Correct Answer: Lobbying efforts on the part of the United Nations in favor of FDI
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Question 4 Multiple Choice 1 of 1 point(s)
What is the record of a country's transactions pertaining to merchandise trade, services, and investment income?
Your Answer: Current account
Correct Answer: Current account
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Question 5 Multiple Choice 1 of 1 point(s)
In practice, many countries have adopted neither a radical policy nor a free market policy toward FDI, but instead a policy that can best be described as:
Your Answer: pragmatic nationalism
Correct Answer: pragmatic nationalism
Feedback: Difficulty: MediumPage: 242
Question 6 Multiple Choice 1 of 1 point(s)
Radical writers argue that the multinational enterprise is an instrument of:
Your Answer: imperialist domination
Correct Answer: imperialist domination
Feedback: Difficulty: MediumPage: 240
Question 7 True/False 1 of 1 point(s)
To a greater or lesser degree, the officials of many governments tend to be free market advocates who weigh the benefits and costs of FDI and typically lean in favor of liberal FDI policies.
Your Answer: false
Correct Answer: false
Feedback: Difficulty: MediumPage: 240
Question 8 Multiple Choice 1 of 1 point(s)
To encourage inward FDI, many countries offer incentives to foreign firms to invest in their country. Such incentives take many forms, but the most common are tax concessions, grants or subsidies, and:
Your Answer: low-interest loans
Correct Answer: low-interest loans
Feedback: Difficulty: MediumPage: 255
Question 9 Multiple Choice 1 of 1 point(s)
Many investor nations now have government backed insurance programs to cover major types of foreign investment risk. The types of risks insurable through these programs include all of the following except:
Your Answer: strategic business blunders
Correct Answer: strategic business blunders
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Question 10 Multiple Choice 1 of 1 point(s)
A distinctive aspect of __________ is the tendency to aggressively court FDI believed to be in the national interest by, for example, offering subsidies to foreign MNEs in the form of tax breaks or grants.
Your Answer: pragmatic nationalism
Correct Answer: pragmatic nationalism
Feedback: Difficulty: MediumPage: 242
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