What are the benefits of FDI to home countries? a. Repatriated earnings from profits from FDI. b. Increased exports of components and services to host countries. c. Learning via FDI from operations abroad. d. All of these answers. | Homework.Study.com (2024)

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• What are the advantages and disadvantages of FDI on home countries? Explain by using the impact of FDI on the balance of payment of the home country.
• What is Foreign Direct Investment? Describe taking into consideration any two countries the benefits and costs of FDI to home and host countries? (answer hint: (subject is international business)
• The surge in FDI in the 1980s is related to the globalization of business with the FDI seen to benefit both source and host countries. Discuss the major benefits of FDI to MNEs.
• How does an outflow of FDI benefit a home country? Take the case of an outflow of FDI/MNCs from the US and explain at least four benefits that the US expects from its overseas investments/investors.
• Foreign Direct Investment: 1. What is Foreign Direct Investment (FDI)? 2. What are the main benefForeign Direct Investment: 1. What is Foreign Direct Investment (FDI)? 2. What are the main benefits a
• Which of the following occurs in a balance of payments when a country exports more goods and services and receives more income from abroad than it imports and pays abroad?: a) current account surplus;
• a) What is foreign direct investment (FDI)? b) What are some of the other ways organizationally and legally that a multinational can do business with a particular country and/or a company in a particular country?
• A nation benefits from international trade if it: a. exports more than it imports. b. imports more than it exports. c. imports goods for which it is a low opportunity cost producer. d. exports goo
• Is there any economic gain for a host country if a MNC offshore some of its activities to the host country? Is there any economic gain for a home country if a MNC from a home country offshores some of
• The FDI increment is a big boost. What will happen when we need to return all these invested money to the foreign parties?
• Describe FDI in your team's country a. What are the sources of FDI? b. What are the industries FDI is investing in? c. What are the barriers of FDI in your team's country?
• If a country is absolutely more efficient than any other country in producing everything, then it would: A. simply export goods and services and import money. B. not trade with others because there would be no benefit in doing so. C. still benefit that na
• For foreign direct investment (FDI) to occur, a firm should primarily: a. conduct cross-border bartering with neighboring countries. b. invest resources in business activities outside its home country. c. export goods or services to consumers in another c
• Which one of the following is a home country foreign direct investment (FDI) promotion? A. Increase taxes on profits earned abroad or negotiate special tax treaties. B. Offer insurance to cover the risks of investments at home. C. Apply political press
• What are the positive and negative effects of foreign direct investment on the economy of a country?
• Which of the following would contribute to a positive trade balance for a country? a. importing financial services b.having foreign residents buy the government bonds of that country c.importing te
• How can a nation benefit from effectively exporting its goods? a. Its citizens can buy cheaper goods. b. Its businesses can invest in the future. c. Its domestic spending increases. d. Its citizens have more money.
• The country of Merilya exported goods and services worth $1.2 million and imported goods and services worth $2.7 million. The net exports of the country were: a. $2 million, and it had a trade surplus b. -$1.5 million, and it had a trade deficit. c. $3.9
• Who gains from international trade? a) Neither the importing nor the exporting nation. b) The gains depends on which nation gets to keep the total revenue from the sale. c) Both the importing and the exporting nations. d) Only the importing nation. e) Onl
• The theory of Foreign Direct Investment (FDI) through Multinational Corporations (MNCs) indicates that FDI/MNC has significant impacts on a host country through three major channels. a) List and expl
• Home country's marginal propensity to consume exportable goods is higher than the foreign elasticity of offer curve. If a tariff is imposed, what will be the consequences, and will the price of imported goods increase, decrease, or remain the same? Give y
• Since real investment by foreigners expands a country's capital stock and hence presumably its output and income, why should any country consider restricting foreign investment?
• 1. A current account surplus is generally a result of: a.imports exceeding exports. b.sales of stock in American companies to citizens of foreign countries. c.a large influx of foreign investment in
• Discuss the benefits and drawbacks of using foreign direct investment (FDI) as a mode of entry into a foreign market as compared to other methods such as exporting and licensing.
• Capital Flows such as foreign direct investment (FDI) and foreign aid are crucial factors that supplement domestic resources for the economic development of less developed countries (LDCs). Comment on each of the following: (i) How important is foreign a
• Suppose that a country imports $130 million worth of goods and services and exports $70 million worth of goods and services. What is the value of net exports?
• A nation benefits from international trade if it a. imports goods for which it is a low opportunity cost producer. b. imports more than it exports. c. exports more than it imports. d. exports good for which it is a low opportunity cost producer
• What are the benefits and costs of a nation that participates in international trade? Do the benefits outweigh the costs or do the costs outweigh the benefits?
• What are the benefits and costs to a nation that participates in international trade? Do the benefits outweigh the costs or do the costs outweigh the benefits?
• If a country has business opportunities that become relatively attractive to other countries, which of the following best predicts the effects of this change? A. Both net exports and net capital outflow increase. B. Both net exports and net capital outflo
• Net exports is a positive number when: a) gross private domestic investment is greater than depreciation. b) depreciation is greater than gross private domestic investment. c) a nation's exports of goods and services exceed its imports. d) a nation's imp
• The primary costs of FDI to host countries are: a. Loss of sovereignty and patriotism. b. Adverse effects on competition and exports. c. Capital outflow. d. Loss of sovereignty, adverse effects on competition, and capital outflow.
• Net exports is a positive figure when O a nation's exports of goods and services exceed its imports. O depreciation exceeds gross private domestic investment. O the economy's stock of capital is declining. O a nation's imports of goods and services ex
• Countries that enage in international trade benefit from exchange and specialization. What are the benefits of a country engaging in international trade?
• Which of the following is true of a country that is running a deficit on a balance-of-payments current account? A. It is importing more goods and services than it is exporting. B. It will result in a steady appreciation of the country's currency. C. It w
• Which of the following results from an increase in exports from the domestic country? Select one: a. Lower domestic marginal product at any given quantity of labor, b. Higher domestic wages, c. Lower domestic labor demand, d. Lower domestic employmen
• There are many risks in outsourcing the production of a product to a foreign country. What are the risks and benefits of such a decision?
• a. List three benefits of foreign direct investment. b. Give one negative aspect of foreign direct investment.
• What are the effects of full capital account convertibility on exports, imports and macroeconomic stability of a country?
• Fill in the blanks: (International Comparative Advantages) Both countries must gain for trade to occur, but both will _ if they trade their own comparative advantage products.
• Given that outsourcing is a viable alternative to Foreign Direct Investment (FDI), what issues should be considered before a firm decides between the two? Provide advantages or disadvantages for each.
• For the home country, as the exchange rate goes up, we would expect: a. The home country to experience a current account balance, b. Exports to increase, c. The home country to experience a capital account balance, d. Imports to increase.
• What kind of advantage does a country have if it can make a product more inexpensively? a. a comparative advantage b. an absolute advantage c. an import advantage d. an export advantage
• What are the advantages and disadvantages of exporting as a mode of entry into foreign markets?
• Exports and imports refer to : A. the transfer of goods and services between countries B. the flow of economic capital between countries C. the flow of pollution between countries D. flows of foreign currencies across countries
• A tariff increases the a. quantity of imports. b. ability of foreign goods to compete with domestic goods. c. prices of imports to domestic buyers. d. All of the answers above are correct.
• What are the effects of a strong dollar on: a) US imports and exports b) other country's exports and imports (Japan, UK, and China)
• From the point of view of a developing country, what are the potential advantages of foreign direct investment?
• The difference between the interest income or receipts earned on investments in the rest of the world by the residents of a given country and the payments to foreigners on investments they have made in that given country is called: A) unilateral transfer
• What are the advantages and disadvantages of exporting as a mode of entry into foreign markets? In a floating exchange rate, the relative value of a currency: A. is more predictable and less volati
• If a country can produce more of all of its goods than any other country can, would it benefit front specializing and trading? Explain your answer.
• A nation experiences negative net export import ratio (NXMR) for some of its commodities. What can be said about the trade situation of those commodities for that nation? a. The country has revealed comparative advantage for these products b. The country
• To obtain the greatest gains from trade, a country should specialize in and ____ those goods for which it has a comparative advantage and ____ those goods for which other countries have a comparative advantage. A. export; export. B. import; import. C e
• If the international relative prices settle at a level that is between each country's opportunity cost: A) there is no basis for gainful trade for either country. B) both countries gain from trade. C) only one country gains from trade. D) one country gain
• A current account surplus results in an increase in the country's net wealth if it is used to: A. Reduce foreign liabilities B. Sell foreign financial assets C. Reduce the stock of foreign exchange assets of the central bank D. All of the available answer
• The difference between the interest income or receipts earned on investments in the rest of the world by the residents of a given country and the payments to foreigners on investments they have made in the given country is called: A) unilateral transfers
• The benefits of international trade are derived from trade in A) tangible goods only. B) intangible goods only. C) goods but not services. D) services but not goods. E) anything of value.
• A nation's current account balance can be expressed: (a) As a nation's export receipts and income received from abroad minus import expenditure and income paid to foreign residents. (b) As the difference between national savings and investment. (c) In ter
• A nation's current account balance can be expressed _____. a. As nation's export receipts and income received from abroad minus import expenditure and income paid to foreign residents. b. As the difference between national savings and investment. c. In te
• Which of the following is a reason why mal-investments (non-productive investments) occur during inflationary times? a. Foreign countries are more likely to purchase US goods at higher prices. b. Businesses are more tempted to invest in business ventures
• When a country opens up to trade in a good for which it has a comparative advantage, and the country begins to export the good, we can conclude that: a. the domestic price will fall after trade opens up. b. the total surplus for this good will increase as
• What is the impact of higher interest rates on the value of a currency and a nation's net exports?
• Which of the following is NOT a part of Balance of Payment (BoP)?: a) Imports b) FDI c) CA d) Money Multiplier
• Among the three components of FA, what has been the role of foreign direct investment in shaping Canada's foreign wealth?
• Depreciation of the dollar is most likely to: A. increase imports. B. increase travel abroad. C. increase exports. D. decrease a trade surplus. E. increase a trade deficit.
• Please state and explain three major potential advantages and three major potential disadvantages of foreign direct investment, from a developing country perspective. In your own view, do you think th
• Holding other things constant, an appreciation of a nation's currency causes: i. exports to rise and imports to fall. ii. exports to fall and imports to rise. iii. both exports and imports to rise. iv. both exports and imports to fall.
• 1. Understand the Radical, Free Market and Pragmatic Nationalism Views on FDI. 2. What is a MNC or MNE? How does it fit into these views? 3. What are the benefits and costs of FDI to the Host (Home) c
• A nation will export the product in which it has a comparative advantage, which results from the good being relatively ________ than in the importing nation. A) cheaper B) more expensive C) lower in quality D) less available
• Which of the following is a factor that influences international trade flows? a. Prices at home and abroad b. Incomes at home and abroad c. Exchange rates for foreign currency d. All of the above
• Which of the following would definitely move a country toward a current account deficit? a. an increase in exports b. an increase in imports c. a larger capital account deficit d. an increase in capital outflow e. a decrease in foreign aid provided to oth
• Explain the effect of an increase in foreign direct investment by a developed country in a developing country on the labor productivity and short-run wage rate in the developing country.
• To partially overcome its current account deficit, the United States needs to attract FDI that could spur economic growth. What policy measures should the United States take to keep attracting FDI int
• What are the benefits of outsourcing the assembly of a product to a foreign country, such as China? What are the potential costs and risks to the firm?
• How would the revenue of a firm be affected if the value of the domestic currency increases and the firm sells products both domestically and in other countries?
• The primary gain from international trade is a. increased employment in the domestic-export sector. b. more goods than would be attainable through domestic production alone. c. tariff revenue. d. increased employment in the domestic-import sector.
• a. What is offshoring? b. What are global value chains (GVCs)? c. What are its benefits and costs? d. What are its implications in income distribution for both countries (sending and receiving offshoring services)?
• Suppose that our exports of goods and services to other countries increase. Explain clearly what you expect to happen to the level of private saving in our economy as a result of this increase in expo
• Which of the following would lead a multinational firm to engage in direct foreign investment rather than export? a. low cost of production in the foreign country b. high tariffs in the foreign country c. high cost of transporting goods d. all of the abov
• A country purchases $3 billion of foreign-produced goods and services and sells $2 billion dollars of domestically produced goods and services to foreign countries. It has: a. exports of $3 billion and a trade surplus of $1 billion. b. exports of $3 billi
• From trade and foreign direct investment (FDI) data, the magnitude of trade and foreign investment flow is massive, an indication of the interdependency of nations and businesses, which, indeed, is both cause and consequence of globalization. Unfortunatel
• What is the absolute advantage and comparative advantage when you export one product or service from your country to China?
• Which of the following international accounts records payments for exports and imports of goods, military transactions, foreign travel, investment income, and foreign gifts? a. The capital account. b. The goods account. c. The current account. d. The offi
• 1. Which of the following will likely increase net exports? (a) The price level in other countries increases faster than in the U.S. (b) Real income for foreign citizens decrease. (c) The U.S. dol
• Suppose there are three countries in the world. Country A exports $11 million worth of goods to Country B and $5 million worth of goods to Country C. Country B exports $3 million worth of goods to Country A and $6 million worth of goods to Country C. Coun
• What role might foregin investment play in helping developing nations improve their growth rate and increase income levels?
• If the rapidly growing manufacturing sector imports more foreign raw materials, will this cause foreign funds to flow into or out of the country? Will the domestic currency appreciate or depreciate? Explain.
• Domestic currency appreciation will: A. hurt domestic firms that export and help domestic firms that import. B. hurt domestic firms that import. C. help domestic firms that export. D. help domestic firms that export and hurt domestic firms that import.
• Holding other things constant, an appreciation of a nation's currency causes: a. exports to rise and imports to fall. b. exports to fall and imports to rise. c. both exports and imports to fall. d. both exports and imports to rise.
• Define Foreign Direct Investment (FDI) and provide an example. Why did Starbucks originally choose to expand internationally through licensing its format to foreign operators?
• Domestic currency depreciation will: A. help domestic firms that export and hurt domestic firms that import. B. help domestic firms that import. C. hurt domestic firms that export and help domestic firms that import. D. hurt domestic firms that export.
• A country engaging in trade according to the principles of comparative advantage gains from trade because it A) is producing exports indirectly more efficiently than it could alternatively. B) is producing imports indirectly more efficiently than it co
• The primary gain from international trade is: A. tariff revenue B. increased employment in the domestic export sector C. more goods than would be attainable through domestic production alone D. increased employment in the domestic import sector
• a. Show that an import tariff can increase the national welfare of a large country. b. What is the source of the gain? c. What is the impact on the national welfare of the foreign country?
• What exactly does having "influence" get a nation? Desirable trade products well below the market rate? Free money? Better living space? Favorable international laws? What tangible benefits does a nat
• If a country has negative net capital outflows, then its net exports are: A. positive and its saving is larger than its domestic investment B. negative and its saving is larger than its domestic investment C. negative and its saving is smaller than its do
• What is the impact of real depreciation on net exports of a country?
• To be included in a country's gross domestic product, a good or service must be: a. headquartered in the country b. an import or export for the country c. produced within the country's borders d. none of the above