Foreign Direct Investment (FDI) Quiz
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Questions and Answers

What is the definition of a foreign direct investment (FDI)?

  • An investment made by a financial institution in one country into business interests located in another country
  • An investment made by an individual in one country into business interests located in another country
  • An investment made by a government in one country into business interests located in another country
  • An investment made by a firm in one country into business interests located in another country (correct)

    • What is the primary characteristic of a jointly owned subsidiary or joint venture?

  • Ownership by a government and a private company
  • Ownership by a single company from one country
  • Ownership by multiple companies from the same country
  • Shared ownership by two or more companies from different countries (correct)

    • Why is a foreign direct investment (FDI) different from a portfolio investment?

  • FDI focuses on short-term investments, while portfolio investment focuses on long-term investments
  • Portfolio investment requires collaboration between multiple firms, while FDI does not
  • Portfolio investment involves a higher level of risk compared to FDI
  • FDI involves ownership and control of the business, while portfolio investment does not (correct)

    • Why is the concept of culture important in defining a nation?

    <p>It consists of specific learned norms based on attitudes, values, and beliefs</p> Signup and view all the answers

    What is the primary reason for considering people in a nation to be similar?

    <p>People share essential attributes of nationhood</p> Signup and view all the answers

    Which factor contributes to the subjective common perception of history in a nation?

    <p>Behavioral norms</p> Signup and view all the answers

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