Types of Organizational Knowledge

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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?

<p>Both advanced economies and emerging markets are active in FDI (A)</p> Signup and view all the answers

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

<p>To share risks and resources (C)</p> Signup and view all the answers

Which factor makes advanced economies attractive FDI destinations?

<p>Superior business infrastructure (A)</p> Signup and view all the answers

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

<p>Availability of skilled workforce (B)</p> Signup and view all the answers

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

<p>Same advantages as local firms (D)</p> Signup and view all the answers

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

<p>Companies from all types of industries are now active in FDI and collaborative ventures (D)</p> 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?

<p>Both advanced economies and emerging markets (C)</p> Signup and view all the answers

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