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8- PAGE 85
Copyright ? 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Chapter 08
Foreign Direct Investment
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True / False Questions?
1.
The amount of FDI undertaken over a given time period is known as the flow of FDI.??True????False
?
2.
FDI has been declining in the last few decades because protectionist pressures have become less intense.??True????False
?
3.
Other things being equal, the greater the capital investment in an economy, the more favorable its future growth prospects are likely to be.??True????False
?
4.
Mergers and acquisitions are quicker to execute than greenfield investments.??True????False
?
5.
Licensing involves the establishment of a new operation in a foreign country.??True????False
?
6.
By placing tariffs on imported goods, governments can increase the cost of exporting relative to foreign direct investment and licensing.??True????False
?
7.
An oligopoly is an industry composed of a limited number of large firms.??True????False
?
8.
Rivals rarely imitate what a firm does in an oligopoly.??True????False
?
9.
John Dunning pioneered the eclectic paradigm.??True????False
?
10.
According to the pragmatic nationalistic view, the MNE is a tool for exploiting host countries to the exclusive benefit of their capitalist-imperialist home countries.??True????False
?
11.
In practice only a few countries country have adopted the free market view in its pure form.??True????False
?
12.
Countries adopting a pragmatic stance pursue policies designed to maximize the national benefits and minimize the national costs.??True????False
?
13.
Research supports the view that multinational firms often transfer significant technology when they invest in a foreign country.??True????False
?
14.
Direct effects of FDI arise when jobs are created in local suppliers as a result of the FDI and when jobs are created because of increased local spending by em
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