What is host country nationals?

employees are hired for jobs in their own country

What is host government?

An agreement between foreign investors and local or host gov

What is First-Mover Advantage in the timing entry?

Ability to pre-empt rivals and capture demand

What is Greenfield Venture

Business enters a new market without help of other business

Choose the 2 correct patterns of FDI

Strategic Behavior and Eclectic Paradigm

Disadvantages of Exporting (wrong answer only)

High-cost manufacturing locations exist

Why is FDI so important for host and home country

as a key to Internationalise their business

Creates opportunities for improving personal skill base

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Entering Foreign Market & FDI

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Questions 20

Answers

1
Which is not political ideology of government's attitudes toward FDI?
Free market view
Shifting ideology
Radical view
The Chronological view
2
What is host country nationals?
employees are hired for jobs outside their own country
employees are hired for jobs in their own country
leaders of other country
leaders of their own country
3
Low development costs and risks
Saving Scheme and Marketing
Licensing and Franchising
Importing and Exporting
Turnkey Contract and Importing
4
What theory state that FDI is tool of imperialism?
Shifting Ideology
Free Market
Radical
Pragmalic National
5
Allows the firm to learn about foreign market, but at the same time it limits firm's exposure
Middle-scale Entry
Large-scale Entry
None-scale Entry
Small-scale Entry
6
What theory stated and implemented comparative advantage
Radical
Shifting Idealogy
Pragmatic Nationalism
Free Market
7
Core competencies can involve
Technological Know-How
Mechanical Know-How
Chemical Know-How
Numbering Know-How
8
This is easy. How can a firm enter foreign market?
Importing
Owned Subsidiary
Firm Strategy
Joint Adventure
9
What is host government?
An agreement between local investors and local
An agreement between local investors and foreigners
An agreement between foreign investors and foreigners
An agreement between foreign investors and local or host gov
10
Which is not the entry modes of market
Exporting
Importing
Joint Venture
Franchising
11
What is First-Mover Advantage in the timing entry?
The "first come first serve" term
First step of doing business
Ability to move into the market first
Ability to pre-empt rivals and capture demand
12
What is Greenfield Venture
Firm risks giving control of its technology to its partner
Contractor that agrees to handle every detail of the project
Business enters a new market without help of other business
Company purchases most or all of another company’s shares
13
Choose the 2 correct patterns of FDI
Strategic Behavior and Radical View
Eclectic Paradigm and Radical View
Strategic Behavior and Eclectic Paradigm
Radical View and Systematic Strategic
14
The pros of acquisition (wrong answer only)
Quick to execute
Integrating with our process
Preempt competitors
Increase market power
15
Disadvantages of Exporting (wrong answer only)
Tariff barriers can make it uneconomical
Foreign agents fail to act in the exporter’s best interest
Transports costs can be high
High-cost manufacturing locations exist
16
Why is FDI so important for host and home country
as a key to Internationalise their business
as a key to main economy
source of income
to gain as much profit
17
Benefits of FDI is?
Creates opportunities for improving personal skill base
Creates opportunities for improvement of a local product
Improve the economic skills
Increase the common sense
18
Wholly owned subsidiaries is the _____ ownership of the firm of the subsidiary
98%
100%
78%
31%
19
What is FDI?
Foreign Debt Increase
Foreign Direct International
Foreign Daughter Indebted
Foreign Direct Investment
20
A domestic firm buys a part or partners with a foreign company to create a new business
Contract Partnership
Direct Investment
Exporting
Joint Venture

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