Reference no: EM132844973

Problem 1) What is an advantage of foreign direct investment?

A. Avoids import taxes

B. Helps in retaining advantage over competition

C. Reduces transportation costs

D. All of the above

Problem 2) Historically, what has been the entry point for most companies into the world of international business?

A. Transfer pricing

B. Foreign direct investment

C. Cross-listing on international stock exchanges

D. Exporting

Problem 3) Which of the following is an example of a "greenfield" investment?

A. Toyota, a Japanese automaker, builds an assembly plant in Ohio, U.S.A.

B. Daimler, a German automaker, merges with Chrysler, a U.S. automaker.

C. Nike contracts with a footwear company in China to make athletic shoes.

D. A Chinese oil company buys a U.S. oil company.

Problem 4) Which of the following is a reason for the tremendous increase in the flow of foreign direct investment since1990?

A. The liberalization of investment laws in many countries

B. The universal application of U.S. GAAP accounting standards

C. The relaxation of transfer pricing regulations

D. The similarities in tax rates and tax laws across the globe