INTB265 - 2

TickTock Inc., an American watchmaker, makes custom watches in California, which it then ships to Brazil for sale there. Based on this information, TickTock Inc. is involved in

exporting.

It is one of Garrett's job responsibilities to report the amount of foreign direct investment undertaken by the government over a one-year time period. Garrett reports the ________ of FDI.

flow

The ________ view argues that international production should be distributed among countries according to the theory of comparative advantage and countries should specialize in the production of goods they can produce most efficiently.

free market

The United States is an attractive destination for foreign investment for all of the following reasons except

its favorable military power.

Royal Chocolatier, a British manufacturer of chocolates, granted U.S. company American Candy Inc. the right to produce and sell Royal Chocolatier's products in the United States In return, American Candy Inc. has to pay a royalty fee on every unit sold. According to this information, what is being done by Royal Chocolatier?

licensing

The amount invested by U.S. firms in foreign markets between 1998 and 2014 was about

$4 trillion.

All of the countries below are considered to be significant investors in foreign markets over the last 20 years except

Canada.

A country that relies on the pragmatic nationalist view would say that

FDI should be allowed so long as the benefits outweigh the costs.

Concrete Forms International needs immediate access to steel in order to produce a new product line. It cannot afford to wait and establish a new operation in a foreign country where steel is prevalent, so it decides to purchase an existing company instead. Why did Concrete Forms decide to make this purchase?

Mergers and acquisitions are quicker to execute than greenfield investments.

_______ has been the world's foreign largest investor since World War II.

The United States

The United States benefits as a recipient of foreign investment in which of the following ways?

influx of capital and technology

Which political ideology reflects the idea that a multinational enterprise is an instrument of imperialist domination?

radical view

Licensing is a good option to enter a foreign market when

tight control of the foreign operation is not required.

The stock of FDI refers to the

total accumulated value of foreign-owned assets at a given time.

A country that imports more goods than it exports experiences a

trade deficit.