BUSI 610 Chapter 8 Exam Questions and Correct Answers Latest Update 2024
foreign direct investment (FDI) - Answers -when a firm invests directly in new facilities to produce or market in a foreign country
-involves ownership of entity abroad for: production, marketing/service, R&D, access of raw ...
foreign direct investment (FDI) - Answers -when a firm invests directly in new facilities to produce or
market in a foreign country
-involves ownership of entity abroad for: production, marketing/service, R&D, access of raw materials or
other resources
forms of FDI - Answers -purchase of assets (mergers and acquisitions)
-new investment (greenfield investments)
-international joint-venture
why or why not might a firm choose purchase of assets for FDI? - Answers -quick entry
-local market know-how
-local financing may be possible
-eliminate competitor
why or why not might a firm choose new investment for FDI? - Answers -no local entity is available for
sale
-local financing incentives
-no inherited problems
-long lead time to generation of sales
why or why not might a firm choose international joint-venture for FDI? - Answers -shared ownership
with local and/or other non-local partner
-shared risk
results of FDI* - Answers -the firm has significant control of its foreign operation
-the firm can affect managerial decisions of the foreign operation
*depending on its extent of ownership and other contractual terms of the FDI
portfolio investment - Answers when FDI has no managerial involvement
FDI flow - Answers amount of FDI over a period of time (one year)
FDI stock - Answers total accumulated value of foreign owned assets at a given point in time
why is FDI important? - Answers -firms want a presence in foreign markets
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TutorJosh. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.49. You're not tied to anything after your purchase.
