Question : 81.Economists refer to knowledge “spillovers” that occur when companies in : 1299333

81.Economists refer to knowledge “spillovers” that occur when companies in the same industry are located in the same area as: 

A. technology flows.

B. overlaps.

C. corporate espionage.

D. externalities.

E. a free rider problem.

82.Silicon Valley in California is the world center for the computer and semiconductor industry and has many of the world’s major computer and semiconductor companies located close to each other, thus offering the location-specific advantage of: 

A. a multipoint competition.

B. an oligopoly.

C. a first mover.

D. externalities.

E. free riders.

83.Dunning’s theory helps explain: 

A. how firms try to match each other’s moves in different markets to try to hold each other in check.

B. the interdependence between firms in an oligopoly that leads to imitative behavior among the rivals.

C. why a greenfield investment in a new facility is better than an acquisition of or a merger with an existing local firm.

D. the problems associated with doing business in a different culture where the rules of the game may be very different.

E. how location factors affect the direction of FDI.

84.The _____ view of FDI traces its roots to Marxist political and economic theory. 

A. radical

B. free market

C. pragmatic nationalism

D. comparative advantage

E. pluralist

85.Radical writers argue that: 

A. a multinational enterprise (MNE) is an instrument of economic development rather than economic domination.

B. MNEs are more beneficial to host countries than to their home countries.

C. important jobs in the foreign subsidiaries of MNEs go to host-country nationals rather than to citizens of the home country.

D. FDI by the MNEs of advanced capitalist nations keeps the less developed countries of the world relatively backward.

E. MNEs exploit their home countries for the exclusive benefit of their host countries.

86.People with radical view toward FDI argue that _____ is an instrument of imperialist domination. 

A. privatization

B. a multinational enterprise

C. nationalization

D. a publicly traded company

E. outsourcing

87.According to the radical view of FDI, multinational enterprises (MNEs) that already exist in a country: 

A. should be immediately nationalized.

B. should be made to pay higher taxes.

C. should be converted in to publicly traded companies.

D. should be banned from obtaining finance from the financial institutions in the host country.

E. should be immediately privatized.

88.According to the radical view, which of the following countries would benefit the most from FDI? 

A. Host countries of MNEs

B. Third world countries

C. Less developed FDI destinations

D. Advanced, capitalist home countries of MNEs

E. Underdeveloped countries

89.Which of the following is a reason for the decline in the popularity of the radical view of FDI? 

A. The rise of communism in Eastern Europe

B. The generally steady economic growth of those countries that embraced the radical position

C. The growing belief in many countries that FDI leads to loss of jobs

D. The strong economic performance of those developing countries that embraced capitalism

E. The collapse of capitalism in the newly independent nations of Asia

90.The _____ view argues that international production should be distributed among countries according to the theory of comparative advantage. 

A. conservative

B. pragmatic nationalism

C. free market

D. radical

E. Keynesian economic