41.Which of the following indicates that a firm has full outright stake in an acquisition?
A. Anderson Corporations acquires at least 75 percent of a company.
B. Sheffield Enterprises acquires at least 60 percent of a company.
C. Arthur Enterprises acquires 98 percent of a company.
D. Maximus Corporations acquires 100 percent of a company.
E. Dream Animax acquires atleast 85 percent of a company.
42.The _____ of foreign direct investment refers to the amount of FDI undertaken over a given period (normally a year).
A. portfolio
B. flow
C. status
D. stock
E. fragment
43.The stock of foreign direct investment refers to:
A. the total accumulated value of foreign-owned assets at a given time.
B. the number of shares of a foreign firm held by the local investors.
C. to the amount of FDI undertaken over a given time period (normally a year).
D. the dividend amount paid by the foreign firm to local investors.
E. the flow of foreign direct investment out of a country.
44.Which of the following statements is true regarding foreign direct investment?
A. The flow of FDI refers to the total accumulated value of foreign-owned assets at a given time.
B. FDI has grown more rapidly than world trade and world output.
C. The general shift toward democratic political institutions has discouraged FDI.
D. Generally, free market economies oppose FDI.
E. The globalization of the world economy is having a negative effect on the volume of FDI.
45.Why has FDI grown more rapidly than world trade?
A. Decline in trade barriers has made the fear of protectionist pressures redundant.
B. Executives of business firms see FDI as a way of circumventing future trade barriers.
C. There has been a general shift toward radical and totalitarian political institutions.
D. Privatization has made developing nations less attractive for multinational enterprises.
E. There has been a general shift toward centrally planned command economies.
46.Historically, most FDI has been directed at the _____ nations of the world.
A. underdeveloped
B. developing
C. developed
D. emerging
E. least developed
47.The United States has been an attractive target for FDI partly because of its:
A. abundance of cheap and skilled labor.
B. stable and dynamic economy.
C. commitment to environmental issues.
D. low corporate tax rates.
E. high trade barriers
48.Which of the following is true regarding the inflow of FDI?
A. Even though developing nations still account for the largest share of FDI inflows, FDI into underdeveloped nations has increased markedly.
B. Africa has historically been the largest recipient of inward FDI.
C. The United Kingdom and France have historically been the smallest recipients of inward FDI.
D. There has been an increase in the importance of China as a recipient of FDI.
E. Latin America is the least important region in the developing world for FDI inflows.
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:
A. they were the most developed countries postwar and home to the largest and best capitalized enterprises.
B. they pursued a policy of blocking or restricting FDI inflow into their own economies.
C. they provided subsidies for their domestic firms to protect them from foreign competition.
D. they control much of the operating structure of the WTO which governs international trade.
E. they were the governing body of the International Monetary Fund.
50.During 1998 to 2010, which of the following countries had the highest FDI outflow?
A. United Kingdom
B. United States
C. Netherlands
D. Germany
E. Japan
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