Chapter 8-MANA 3312

Use the following data to answer the next question (all data UNCTAD, 2013; all in US$ Millions): =================================================== ## Outward FDI Stock 2013: Central African Republic: 43.2; Chad: 70.3; Mozambique: 24.3; Namibia: 31.8; Niger: 14; Rwanda: 12.9; Swaziland: 76.2 ## Inward FDI Stock 2013: Central African Republic: 619.5; Chad: 4757.7; Mozambique: 20966.9; Namibia: 4277.3; Niger: 4939.7; Rwanda: 853.9; Swaziland: 838.1 ## FDI 2013 Inflow: Central African Republic: 0.8; Chad: 538.4; Mozambique: 5935.1; Namibia: 699.1; Niger: 631.4; Rwanda: 110.8; Swaziland: 67 ## FDI 2013 Outflow: Central African Republic: 0; Chad: 0; Mozambique: -0.3; Namibia: -8.2; Niger: -6.7; Rwanda: 13.5; Swaziland: 0.6 =================================================== Among the African countries listed, some have more capital investments abroad from its multinationals than others. According to the data provided, and assuming the listed variables is all the information you have, companies from _____ have, overall and over time, invested abroad more than companies from ______:

Chad; Niger

Your boss asked you to analyze the effects of a foreign government's new policies on your company. Your company has had FDI into that country for quite some time, and that operation is struggling to make ends meet. Your analysis suggests that the foreign government just made it harder for your company to retain your FDI in that country, but also just made it easier for your company to serve that foreign market through exports. It is most likely that foreign country has:

Decreased subsidies to local producers

Which of the following reflects internalization theory?

Licensing may result in a firm's giving away valuable technological know-how to a potential foreign competitor.

Use the following data to answer the next question (all data UNCTAD, 2013; all in US$ Millions): =================================================== ## Outward FDI Stock 2013: Swaziland: 76.2; Chad: 70.3; Central African Republic: 43.2; Namibia: 31.8; Mozambique: 24.3; Niger: 14; Rwanda: 12.9 ## Inward FDI Stock 2013: Mozambique: 20966.9; Niger: 4939.7; Chad: 4757.7; Namibia: 4277.3; Rwanda: 853.9; Swaziland: 838.1; Central African Republic: 619.5 ## FDI 2013 Inflow: Mozambique: 5935.1; Namibia: 699.1; Niger: 631.4; Chad: 538.4; Rwanda: 110.8; Swaziland: 67; Central African Republic: 0.8 ## FDI 2013 Outflow: Rwanda: 13.5; Swaziland: 0.6; Central African Republic: 0; Chad: 0; Mozambique: -0.3; Niger: -6.7; Namibia: -8.2 =================================================== According to the data provided, and assuming the listed variables is all the information you had, which of the following countries has created the greatest amount of investments abroad by their companies in 2013 reported alone?

Rwanda

A certain foreign country does not reject any type of inward FDI proposals, and it takes offense when other countries restrict FDI flows in any way. Which political view of FDI is discussed in this example?

The free market view

In early 2017, the newly elected US government accused NAFTA partners, particularly Mexico, of exporting more goods and services to the US than it is importing from the US. That would mean the US would have, relative to Mexico, a(n):

Trade deficit

When a country is importing more goods and services than it is exporting, it is incurring a(n)

current account deficit.

Which of the following concepts helps explain how location factors affect the direction of FDI?

eclectic paradigm

Company A and Company B are both considering different forms of FDI. Company A needs to have complete control over manufacturing and marketing in the foreign market; Company B needs to protect many valuable strategic assets, such as brand loyalty, and customer relationship. It is more likely that the chosen form of entry for Company A would a(n) __________, and that the chosen form of entry for Company B would a(n) ___________:

greenfield; acquisition

Country X has a domestic market that is VERY attractive to foreign companies. A change in government in country X provokes a significant decrease in imports tariffs. Assuming that the international attractiveness of country X's local market has remained unchanged, one could say that such changes will _________ the attractiveness of __________ :

increase / exports from USA and others into country X