Peregrine Exam Day 9 Questions And
Answers With Verified Solutions 100%
Correct!!!
Foreign Direct Investment - ANSWER✔✔ Investment made by a foreign company
in the economy of another country.
FDIs are used in.... - ANSWER✔✔ open markets not closed markets for investors
What are the types of FDIs? - ANSWER✔✔ Horizontal, vertical and conglomerate
Horizontal FDI - ANSWER✔✔ A type of FDI in which a firm duplicates its home
country-based activities at the same value chain stage in a host country.
Vertical FDI - ANSWER✔✔ A type of FDI in which a firm moves upstream or
downstream at different value chain stages in a host country.
Conglomerate FDI - ANSWER✔✔ Investing in business overseas that has no
relationship to your core business.
What bureau tracks FDIs into the U.S.? - ANSWER✔✔ Economic Analysis
What is an example of FDI? - ANSWER✔✔ Apple's investment in China
, What are 4 ways to increase job creation? - ANSWER✔✔ Reduce interest rates,
spend on public works, spend on unemployment benefits, and cut business
payroll taxes for new hires
multinational corporation - ANSWER✔✔ An organization that manufactures and
markets products in many different countries and has multinational stock
ownership and multinational management
What can have a positive economic effect? - ANSWER✔✔ Multinational
corporations
T/F Transnational business is considered diversifying the investment? -
ANSWER✔✔ T
Market Entry Strategies - ANSWER✔✔ various tactics that managers use to enter
foreign markets
direct exporting - ANSWER✔✔ practice by which a company sells its products
directly to buyers in a target market
Licensing - ANSWER✔✔ the legal process whereby a licensor allows another firm
to use its manufacturing process, trademarks, patents, trade secrets, or other
proprietary knowledge
Franchising - ANSWER✔✔ A contractual agreement between a franchisor and a
franchisee that allows the franchisee to operate a business using a name and
format developed and supported by the franchisor.
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