International Marketing - Test 3 QuestionsFDI occurs when a firm

Which of the following factors has had a positive effect on the volume of foreign trade investments?

World economy globalization

Which of the following is NOT one of the main instruments of trade policy?

Credit portfolios

What term refers to a situation in which a government does not attempt to restrict what its citizens can buy or sell to another country?

Free trade

The stock of FDI is:

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

The _____ of FDI refers to the amount of FDI undertaken over a year

flow

FDI occurs when a firm:

invests directly in facilities to produce a product in a foreign country

Which of the following is an example of a greenfield investment?

A Chinese sugar maker setting up a sugar crushing facility in Cuba.

Which of the following statements is true about the growth of foreign direct investment in the world economy over the last few decades?

FDI has accelerated faster than world trade growth.

Which of the following factors has made the United States an attractive target for foreign direct investment?

Its wealthy domestic markets

Specific tariffs are:

Levied as a fixed charge for each unit of a good imported.