37. A computer manufacturing firm from the United States invests in a microprocessor
manufacturing plant in Taiwan. This is an example of:
38. According to the U.S. Department of Commerce, in the United States _____ occurs
whenever a U.S. citizen, organization, or affiliated group takes an interest of 10 percent or more
in a foreign business entity.
39. A firm becomes a(n) _____, once it undertakes FDI.
40. Which of the following is most likely to involve establishment of a new operation in a
foreign country?
41. Which of the following indicates that a firm has full outright stake in an acquisition?
42. The _____ of foreign direct investment refers to the amount of FDI undertaken over a
given period (normally a year).
43. The stock of foreign direct investment refers to:
44. Which of the following statements is true regarding foreign direct investment?
45. Why has FDI grown more rapidly than world trade?
46. Historically, most FDI has been directed at the _____ nations of the world.
47. The United States has been an attractive target for FDI partly because of its:
48. Which of the following is true regarding the inflow of FDI?
49. Countries such as the U.S., the U.K., France, Germany, the Netherlands, and Japan
dominate in the share of total global stock of FDI and FDI outflows and in rankings of the world’s
largest multinationals because:
50. During 1998 to 2010, which of the following countries had the highest FDI outflow?
51. In the case of developing nations, about _____ of FDI is in the form of cross-border
mergers and acquisitions.
52. Mergers and acquisitions differ from greenfield investments in that:
53. _____ involves producing goods at home and then shipping them to the receiving country
for sale.
54. The _____ states that combining location-specific assets or resource endowments and
the firm’s own unique assets often requires FDI and it also requires the firm to establish
production facilities where those foreign assets or resource endowments are located.
55. 3M, an American firm, manufactures adhesive tapes in St. Paul, Minnesota, and ships the
tapes to South Korea for sale. According to this information, which of the following is being done
by 3M?
56. Which of the following involves granting a foreign entity the right to produce and sell the
firm’s product in return for a royalty fee on every unit sold?