Create an Account

Already have account?

Forgot Your Password ?

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


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


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.


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


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

Answer (UnSolved)

question Get Solution

Related Questions