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Home / Questions / Which of the following political views treats FDI as an instrument of imperialism and as a

Which of the following political views treats FDI as an instrument of imperialism and as a

Which of the following political views treats FDI as an instrument of imperialism and as a vehicle for exploitation of domestic resources by foreign capitalists and firms?

a.Pragmatic nationalism

b.The free-market view

c.The radical view

d.The monopolistic view

 

 

 

23._____ suggests that FDI, unrestricted by government intervention, will enable countries to tap into their absolute or comparative advantages by specializing in the production of certain goods or services.

a.The radical view

b.The free-market view

c.Pragmatic nationalism

d.The monopolistic view

 

 

 

24.Which of the following political perspectives maintains the view that FDI has both pros and cons and can only be approved when its benefits outweigh costs?

a.Pragmatic nationalism

b.Protectionism

c.The radical view of FDI

d.The free market view of FDI

 

 

 

25.Which of the following economic perspectives on FDI has its principles rooted in Marxism?

a.Pragmatic nationalism

b.Laissez-faire

c.The free market view

d.The radical view

 

 

 

26._____ refers to the reaction of local firms to rise to the challenge demonstrated by MNEs through learning and imitation.

a.Bandwagon effect

b.Domino effect

c.Dissemination risk

d.Contagion effect

 

 

 

27.Which of the following is a primary cost of FDI to host countries?

a.Capital inflow

b.Increase in competition between local firms

c.Capital and job loss

d.Loss of sovereignty

 

 

 

28.Which of the following is a benefit of FDI to home countries?

a.Decrease in competition between local firms

b.Capital outflow

c.Learning from operations

d.Creation of new jobs

 

 

 

29.Which of the following is a primary cost of FDI to home countries?

a.Loss of sovereignty

b.Increase in local competition

c.Capital outflow and job loss

d.Increased exports of components and services to host countries

 

 

 

30._____ refers to the ability to extract favorable outcome from negotiations due to one party’s strengths.

a.Expropriation

b.Bargaining power

c.Compromising power

d.Accommodating power

 

 

 

31._____ refers to the deal struck by MNEs and host governments, which change their requirements after the initial FDI entry.

a.Obsolescing bargain

b.Integrative bargain

c.Automated bargain

d.Ongoing bargain

 

 

 

32.In Round Two of FDI negotiation process between MNEs and host governments, _____.

a.the government may demand renegotiations of the deal

b.the MNE is not willing to enter in the absence of some government assurance

c.the previous deal becomes obsolete

d.the MNE enters the host market and earns profits

 

 

 

33.Government’s confiscation of foreign assets is known as _____.

a.obsolescing bargains

b.sunk costs

c.expropriation

d.conflicting interests

 

 

 

34.Costs that a firm has to endure even when its investment turns out to be unsatisfactory are referred to as _____.

a.switching costs

b.replacement costs

c.cost overruns

d.sunk costs

 

 

 

35.Which of the following statements best describes an FDI?

a.Setting up subsidiaries in foreign locations to do in-house work

b.Turning over an organizational activity to an outside supplier to perform on behalf of the firm

c.Outsourcing an in-house activity to another domestic firm

d.Assigning firm activities to foreign firms in neighboring countries

Dec 08 2019 View more View Less

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