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salmonraccoon110Lv1

18 Aug 2020

Which of the following is a primary cost of FDI to host countries?

a. Capital inflow
b. Capital and job loss
c. Loss of sovereignty
d. Increase in competition between local firms

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Joshua StredderLv10

7 Oct 2020

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The surge in FDI in the 1980s is related to the globalisation of business with the FDI seen to benefit both source and host countries. Discuss the major benefits of FDI to MNEs.

amethystdolphin327

The primary costs of FDI to host countries are:

		Loss of sovereignty and patriotism
		Adverse effects on competition and exports
		Capital outflow
		Loss of sovereignty, adverse effects on competition, and capital outflow

____ suggests that FDI, unrestricted by government intervention, will enable countries to tap into their absolute or comparative advantage by specializing in the production of certain goods or services.

		The radical view
		The free market view
		Pragmatic nationalism
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What are the benefits of FDI to home countries?

		Repatriated earnings from profits from FDI.
		Increased exports of components and services to host countries.
		Learning via FDI from operations abroad.
		All of these answers

When one firm enters a foreign country through FDI, its rivals are likely to follow by undertaking additional FDI in a host country to:

		Create knowledge spillover
		Discover a new market for its goods
		Overcome and combat market failure through FDI
		Acquire location advantages or neutralize the first moverâs location advantages

Most countries practice:

		Pragmatic nationalism
		Free market based FDI
		Government embracing radical view
		French patriotism

FDI may be viewed as a reflection of firm motivation to extend firm-specific capabilities abroad and their responses to overcome imperfections and failures.

		True
		False

Most countries practice a totally "free market" view.

		True
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8. Outsourcing is the process of turning over an organizational activity to an outside supplier, located in a foreign country, which will perform it on behalf of the local firm.

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Financial, physical, and technological resources and capabilities are all tangible assets.

		True
		False

A firm's resources and capabilities are tangible assets a firm uses to choose and implement its strategies.

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		False

An example of low power distance would be when subordinates address their bosses on a first-name basis.

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Benchmarking is an assessment as to whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors.

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A country with low-masculinity has a more subtle differentiation between the gender roles.

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Setting up subsidiaries abroad so the work can be performed in-house but in the foreign location is also called captive sourcing.

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Managers in low uncertainty avoidance countries rely more on experience and training than managers in high uncertainty avoidance countries who rely more on rules.

		True
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Informal institutions include laws, regulations, and rules.

		True
		False

The United States is often classified as a collective society.

		True
		False

A pure market economy characterized by the "invisible hand" of market forces is noted by

		John Stuart Mill
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Culture is defined in the text as:

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The government taking a "hands-off approach" is known as:

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		Command economy
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Expatriate managers make ideal candidates for top management positions.

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____ are defined as rights associated with the ownership of intellectual property.

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In a collective society:

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Which of the following definitions best defines an expatriate manager?

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An advantage of choosing exporting as a mode of entry into foreign markets is that a firm:

A. can avoid the cost of establishing manufacturing operations in the host country.

B. shares the development costs and risks with its host partner.

C. can earn returns from process technology skills in countries where FDI is restricted.

D. has access to local partner's knowledge.

E. has the ability to engage in global strategic coordination.