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Questions and Answers
What does FDI stand for?
What does FDI stand for?
- Foreign Development Income
- Foreign Domestic Investment
- Foreign Direct Investment (correct)
- Foreign Domestic Income
What does positive net flow indicate in the context of FDI?
What does positive net flow indicate in the context of FDI?
- Foreign investors invest more in the country than domestic companies investing abroad
- There is no investment happening either domestically or abroad
- Investment is evenly balanced between domestic and foreign investors
- Domestic companies invest more abroad than foreign investors in the country (correct)
What is the main characteristic of Horizontal FDI?
What is the main characteristic of Horizontal FDI?
- Conducting different activities in a foreign country
- Focusing on import and export activities
- Expanding foreign operations to new industries
- Expanding domestic operations to a foreign country (correct)
What does Inward FDI measure?
What does Inward FDI measure?
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What is one of the key functions of FDI according to the text?
What is one of the key functions of FDI according to the text?
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Which statement accurately describes Outward FDI?
Which statement accurately describes Outward FDI?
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What type of FDI is McDonald's opening restaurants in Japan?
What type of FDI is McDonald's opening restaurants in Japan?
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If McDonald's were to purchase a large-scale farm in Canada to produce meat for their restaurants, what type of FDI would this be?
If McDonald's were to purchase a large-scale farm in Canada to produce meat for their restaurants, what type of FDI would this be?
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Which of the following is NOT a motive for foreign direct investment?
Which of the following is NOT a motive for foreign direct investment?
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What is a benefit of FDI for the host country?
What is a benefit of FDI for the host country?
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What is a disadvantage of FDI for the host country?
What is a disadvantage of FDI for the host country?
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What is the main difference between foreign direct investment (FDI) and foreign portfolio investment (FPI)?
What is the main difference between foreign direct investment (FDI) and foreign portfolio investment (FPI)?
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