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Peregrine Exam Day 9|40 Questions and Answers (Global dimensions of Business)
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Peregrine Exam Day 9|40 Questions andAnswers (Global dimensions of Business)
Foreign Direct Investment - -Investment made by a foreign company in the
economy of another country.
-FDIs are used in.... - -open markets not closed markets for investors
-What are the types of FDIs? - -Horizontal, vertical and conglomerate
-Horizontal FDI - -A type of FDI in which a firm duplicates its home country-
based activities at the same value chain stage in a host country.
-Vertical FDI - -A type of FDI in which a firm moves upstream or downstream
at different value chain stages in a host country.
-Conglomerate FDI - -Investing in business overseas that has no relationship
to your core business.
-What bureau tracks FDIs into the U.S.? - -Economic Analysis
-What is an example of FDI? - -Apple's investment in China
-What are 4 ways to increase job creation? - -Reduce interest rates, spend
on public works, spend on unemployment benefits, and cut business payroll
taxes for new hires
-multinational corporation - -An organization that manufactures and
markets products in many different countries and has multinational stock
ownership and multinational management
-What can have a positive economic effect? - -Multinational corporations
-T/F Transnational business is considered diversifying the investment? - -T
-Market Entry Strategies - -various tactics that managers use to enter
foreign markets
-direct exporting - -practice by which a company sells its products directly
to buyers in a target market
-Licensing - -the legal process whereby a licensor allows another firm to use
its manufacturing process, trademarks, patents, trade secrets, or other
proprietary knowledge
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