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Questions and Answers

Why do Japanese automakers set up factories in the U.S.?

To access a density of knowledge workers

To avoid trade barriers (correct)

To establish physical presence in multiple countries

To take advantage of strong GDP per capita

Which countries are considered leading destinations for Foreign Direct Investment (FDI)?

India, Australia, Germany, Netherlands

USA, Britain, Canada, Japan (correct)

Mexico, Russia, France, South Korea

Brazil, India, China, South Africa

What is a common trend regarding FDI flows from developed industries to emerging markets?

Increasing continuously

No longer happening (correct)

Decreasing over time

Stagnant since the 1980s

Which statement best describes the current scenario of FDI activities?

Both advanced economies and emerging markets are active in FDI Signup and view all the answers

What is a primary reason for companies engaging in collaborative ventures through FDI?

To share risks and resources Signup and view all the answers

Which factor makes advanced economies attractive FDI destinations?

Superior business infrastructure Signup and view all the answers

Why have emerging markets and developing economies gained appeal as FDI destinations?

Availability of skilled workforce Signup and view all the answers

What is a significant advantage of establishing a physical presence in a foreign country?

Same advantages as local firms Signup and view all the answers

What has changed regarding the types of industries involved in Foreign Direct Investment (FDI)?

Companies from all types of industries are now active in FDI and collaborative ventures Signup and view all the answers

Which type of countries are both companies from advanced economies and emerging markets investing in for Foreign Direct Investment?

Both advanced economies and emerging markets Signup and view all the answers