Chapter 8 – FDI Exam Questions With Correct Answers A+
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Module
FDI
Institution
FDI
Chapter 8 – FDI Exam Questions With
Correct Answers A+
The world flow of foreign direct investment between 1990 and 2017 increased 600 percent. If a
company decides to establish a new operation in a foreign country, that company has engaged in
- Answergreenfield investment
Toyota produces 1....
Chapter 8 – FDI Exam Questions With
Correct Answers A+
The world flow of foreign direct investment between 1990 and 2017 increased 600 percent. If a
company decides to establish a new operation in a foreign country, that company has engaged in
- Answer✔greenfield investment
Toyota produces 1.2 million vehicles per year in the United States. Which best explains why
Toyota has chosen to produce its vehicles in the United States rather than exporting from Japan?
- Answer✔Toyota is concerned that its ability to export from Japan could be compromised by
U.S. tariffs and quotas.
Toyota's $25 billion investment in the U.S. market indicates that the Japanese company believes
that the United States is a strategically important market. When considering future international
expansion, if Toyota has valuable know-how that cannot be protected with a licensing contract
and also faces high transportation costs, Toyota should - Answer✔invest directly in target
markets
According to the video, Japan's Toyota has invested $25 billion in production facilities in the
United States. Which is not a correct match between an action occurring because of Toyota's
investment in the United States and the effect on the host country? - Answer✔New jobs in Japan
are created to facilitate U.S. investment. Effect on host country: employment effect.
_______ has been the world's foreign largest investor since World War II. - Answer✔The United
States
The amount invested by U.S. firms in foreign markets between 1998 and 2014 was about -
Answer✔$4 Trillion
All of the countries below are considered to be significant investors in foreign markets over the
last 20 years except - Answer✔Canada
The United States is an attractive destination for foreign investment for all of the following
reasons except - Answer✔its favorable military power.
The United States benefits as a recipient of foreign investment in which of the following ways? -
Answer✔influx of capital and technology
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