101.Foreign managers trained in the latest management techniques can often help to improve the efficiency of operations in the host country, whether those operations are acquired or greenfield developments. This benefit of FDI falls into the category of _____.
A. employment effects
B. balance-of-payments effects
C. effects on competition
D. resource transfer effects
E. autonomy effects
102.Which of the following statements is most likely to be true regarding the effects of FDI on employment?
A. FDI does not result in job creation.
B. FDI has only indirect effects on employment in the host country.
C. The indirect employment effects of FDI are always smaller than the direct effects.
D. When FDI takes the form of an acquisition of an established enterprise in the host economy as opposed to a greenfield investment, the immediate effect is always an increase in the employment.
E. A beneficial employment effect claimed for FDI is that it brings jobs to a host country that would otherwise not be created there.
103.Direct effects of FDI on employment in the host country arise when a foreign MNE:
A. brings in managers trained in the latest management techniques from the home country.
B. creates jobs because of increased local spending by employees of the MNE.
C. employs a number of host country citizens.
D. causes local suppliers to hire more people.
E. creates jobs in the supporting industries.
104.Indirect effects of FDI on employment in a host country arise when:
A. a foreign MNE employs a number of host-country citizens.
B. jobs are created because of increased local spending by employees of an MNE.
C. an MNE brings in managers from the home country for its operations in the host country.
D. an MNE recruits people from the host country for research and development.
E. an MNE sends it home country employees to host countries for training.
105._____ accounts are national accounts that track both payments to and receipts from other countries.
A. Equity
B. Dematerialized
C. Balance of trade
D. Asset
E. Balance-of-payments
106.In the balance of payments, the _____ account records transactions involving the export and import of goods and services.
A. current
B. foreign
C. internal
D. tariff
E. savings
107.A current account deficit is also known as a(n) _____ deficit.
A. stock
B. inventory
C. external
D. tariff
E. trade
108.When a country is importing more goods and services than it is exporting, it is incurring a(n):
A. trade surplus.
B. current account deficit.
C. positive balance of payment.
D. economic recession.
E. net capital inflow.
109.Which of the following is the only way in which a current account deficit can be supported in the long run?
A. Borrowing from the IMF
B. Selling assets to foreigners
C. Divesting stock in domestic corporations
D. Purchasing stocks, bonds, and real estate in other countries
E. Issuing negotiable instruments like the bills of exchange
110.Which of the following is most likely to be the effect of FDI in the form of a greenfield investment on the host country?
A. It drives down prices and increases the economic welfare of consumers.
B. It raises unemployment levels.
C. It causes firms to fight for scarce capital investments.
D. It leads to an oligopolistic market and unfair pricing.
E. It leads to decreased productivity, product and process innovations, and lesser economic growth.
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