Foreign Direct Investment Foreign direct investment 1 / 10 FDI includes Intellectual properties Human resources Intangible goods Tangible goods 2 / 10 Which one of the following is a home country FDI promotion? offer insurance to cover the risks of investment at home grant loans to firms wishing to increase their investment abroad apply differential tax rates increase taxes on profit earned abroad or negotiate special tax treaties 3 / 10 When one firm enters a foreign country through FDI, its rivals are likely to follow by undertaking additional FDI in a host country to combat market failure through FDI find a new market for its goods acquire location advantages or neutralize the first mover’s location advantage create knowledge spillover 4 / 10 FDI is allowed under 2 routes, _______ and _____ Check 5 / 10 FDI is a major source of ______ which means that countries with limited capital can receive finance beyond national borders from wealthier countries. Check 6 / 10 The _____ compromise cross border acquisitions. Check 7 / 10 FDI can make a positive contribution to a host economy by supplying ___ , ____ and _______ Check 8 / 10 Market ___ are factors that refrain markets from working perfectly. Check 9 / 10 _____FDI takes 2 forms, there is backward vertical FDI into an industry abroad that provides inputs for a firm’s domestic production processes. Check 10 / 10 According to ___ Theory, by vertically integrating backward to gain control over the source of raw material, a firm can raise entry barriers and shut new competitors out of an industry. Check Your score isThe average score is 0% LinkedIn Facebook Twitter VKontakte 0% Restart quiz
