Podcast
Questions and Answers
Study Notes
- The markets are imperfect in reality, allowing for the exploitation of exclusive advantages.
- When analyzing a project's feasibility, a company should consider cash flow fluctuations and the correlation with MNC cash flow.
- The higher the ability to change a project's cash flow and the lower the correlation with MNC cash flow, the lower the project risk.
- Most FDI from UK companies is in the US.
- A company is more likely to have stable cash flow if the percentage of foreign sales is higher and the number of foreign countries where the company sells products is larger.
- A company can achieve a more effective investment project portfolio by focusing solely on one product and marketing it in one location.
- A host government is less likely to provide incentives for FDI if the company plans to compete with local companies.
- If countries have a significant influence on each other, the correlation in their economic growth rates may be high and positive, and a company benefits from diversifying sales between these countries.
- A company benefits the most from diversification when the correlation between national economies is low.
- A company may consider direct foreign investment in a country with a perceived undervalued currency because of the relatively low initial costs.
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Description
This quiz will test your knowledge on international business and investment strategies. From analyzing project feasibility to diversifying sales between countries, you'll be challenged on your understanding of the factors that can impact a company's success in the global market. Whether you're a business student or a seasoned entrepreneur, this quiz will push your knowledge to the limit. So put on your thinking cap and get ready to see if you have what it takes to succeed in the world of international business!