International Business: Ch. 14 Foreign Direct Investment Quiz
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Questions and Answers

What is the strategy in which a firm establishes a physical presence abroad by acquiring productive assets such as capital, technology, labor, land, plant, and equipment?

  • Outsourcing
  • Exporting
  • Strategic Alliance
  • Foreign Direct Investment (FDI) (correct)
  • Which type of business alliance involves partnering firms pooling their resources and sharing costs and risks of a venture?

  • Franchising
  • Export Processing Zone (EPZ)
  • Licensing Agreement
  • International Collaborative Venture (correct)
  • What does FDI stand for in the context of international business?

  • Free Duty Import
  • Foreign Direct Involvement
  • Foreign Direct Investment (correct)
  • Financial Development Index
  • What is a form of collaboration between two or more firms to create a jointly-owned enterprise?

    <p>Joint Venture (JV)</p> Signup and view all the answers

    Which motive for Foreign Direct Investment involves seeking new markets or new raw materials?

    <p>Resource-Seeking</p> Signup and view all the answers

    In the context of international collaborative ventures, what is a cross-border business alliance where partnering firms pool their resources and share costs and risks of a venture?

    <p>International Collaborative Venture</p> Signup and view all the answers

    Which country's pharmaceutical firm purchased the global Vaccines division of Switzerland’s Novartis for $5.25 billion?

    <p>United Kingdom</p> Signup and view all the answers

    What amount of money did Denmark’s Lego Group spend to build a toy factory in China?

    <p>More than 100 million euros</p> Signup and view all the answers

    Where is 7-Eleven's brand based?

    <p>Japan</p> Signup and view all the answers

    Which U.S. firm did Japan’s Toshiba form a joint venture with to establish R&D centers in Europe and India?

    <p>United Technologies</p> Signup and view all the answers

    Which country is the base for the production of KitKat chocolate bars?

    <p>Switzerland</p> Signup and view all the answers

    Where is Miller beer's brand based?

    <p>Canada</p> Signup and view all the answers

    Which country is the base for the production of Budweiser beer?

    <p>Belgium</p> Signup and view all the answers

    Which country is the home of Starkist Tuna?

    <p>South Korea</p> Signup and view all the answers

    Where is Absolut Vodka's brand based?

    <p>France</p> Signup and view all the answers

    Which country is the home of Godiva chocolate?

    <p>France</p> Signup and view all the answers

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