BGFs and International Business Performance Quiz
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Questions and Answers

Why do investors establish a physical presence in a country?

  • To avoid trade barriers
  • To take advantage of local firms (correct)
  • To reduce the GDP per capita
  • To increase transportation costs
  • Which countries have been popular destinations for Foreign Direct Investment (FDI)?

  • USA, Britain, Canada (correct)
  • China, South Africa, Russia
  • Mexico, Brazil, India
  • Australia, France, Italy
  • What was a common trend in the past regarding FDI flows between developed and emerging markets?

  • FDI mainly flowed from developed industries to emerging markets (correct)
  • FDI mainly flowed from emerging markets to developed industries
  • All FDI stayed within developed industries
  • Emerging markets avoided FDI altogether
  • Why have emerging markets and developing economies gained appeal as FDI destinations?

    <p>Due to attractiveness for foreign investors</p> Signup and view all the answers

    What types of companies are active in Foreign Direct Investments (FDI)?

    <p>Companies from all types of industries</p> Signup and view all the answers

    Which industry has traditionally been involved in Foreign Direct Investments (FDI)?

    <p>Manufacturing sector only</p> Signup and view all the answers

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