QUIZ

FIN203

NAME: SCORE:
DATE:

CHOICES FOR IDENTIFICATION

Greenfield Investment John Dunning The Radical View Foreign Direct Investment(FDI)
Oligopoly Robert Reich The Free Market view High-Technology Industries
Exporting Electic Paradigm World Trade Organization(WTO)

1. ___________________Establishment of a wholly owned new operation in a foreign country.

2. ___________________sale of products produced in one country to residents of another country.

3. An _______________ is an industry composed of a limited number of large firms. A critical

competitive feature of such industries is interdependence of the major players: What one firm does can
have an immediate impact on the major competitors, forcing a response in kind.
4. ________________ He argues location-specific advantages are also of considerable importance in
explaining both the rationale for and the direction of foreign direct investment.
5. _________________The MNE is an instrument of imperialist domination and a tool for exploiting
host countries to the exclusive benefit of their capitalist-imperialist home countries.
6. ________________the MNE is an instrument for dispersing the production of goods and services
to the most efficient locations around the globe. Viewed this way, FDI by the MNE increases the
overall efficiency of the world economy.
7. ______________________Political scientist noted that such concerns are the product of outmoded
thinking because they fail to account for the growing interdependence of the world economy.
8. _____________________in which protecting firm-specific expertise is of paramount importance
and licensing is hazardous.
9. ___________________________________ occurs when a firm invests directly in facilities to
produce or market a product in a foreign country.

10. Which of these factors creates a limitation to exporting?

A. A product that can be produced almost anywhere C. Minimal trade barriers
B. A product that can be produced by one company D. Low transportation costs
11. The limits of ______________ include giving away valuable know-how to competitors and losing
control over marketing, production, and strategy.
A. Exporting C. Licensing
B. Importing D. Acquisitions
12. A country's ____________ accounts track the country's payments to and receipts from other
countries.
A. Balance-of-trade C. Balance-of-payments
B. Balance-of-debt D. Balance-of-financing
13. What international organization is involved in the governing of FDI?
A. WTO C. NATO
B. IMF D. UN
14. What country has been the largest source of FDI since World War II?
A. United States C. China
B. United Kingdom D. France
15. The ___________________ combines the various perspectives of foreign direct investment into a
holistic theory.
A. Difference principle C. Flow of FDI
B. Tragedy of the commons D. Eclectic paradigm