Which of the following statements about foreign direct investment (FDI) are correct? Check all that apply....

Which of the following statements about foreign direct investment (FDI) are correct? Check all that apply.

______________________________________________________________________

The acquisition of a U.S. corporation by a German company is an example of European direct investment in the United States.

Direct investment between the United States and Japan to produce the same automobile is classified as conglomerate diversification.

FDI occurs when earnings of the parent company’s foreign subsidiary are reinvested in plant expansion.

FDI flows include purchases of U.S. government bonds by the Chinese government.

U.S. FDI includes purchases of foreign government bonds by U.S. investors.

Solutions

Expert Solution

Answer - The following options are correct -

Option A and C.

The acquistion of US corporation by a german company is an example of European direct invesment in US.

FDI occurs when the earnings of parents companies foreign subsidiary are reinvested in plant expansion.

The definition of conglomerate diversification has been given wrong. The products need to be diversified here. Investment in stocks and bonds is not FDI. Hence option A and C will be correct.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Which of the following statements about mutations and genetic disease are correct? CHECK ALL THAT APPLY!...

Which of the following statements about mutations and genetic disease are correct? CHECK ALL THAT APPLY! Check all that apply A. Some genetic diseases may be caused by the substitution of only one incorrect amino acid in a protein. B. A frameshift mutation affects only the codon directly after the addition or deletion. C. A change in DNA sequence may change the pattern of protein folding, resulting in genetic disease. D.It is possible for the substitution of one base for...

Which of the following statements about a monopoly firm are true? (Check all that apply.) It...

Which of the following statements about a monopoly firm are true? (Check all that apply.) It faces a downward-sloping demand curve. Its long-run average total cost curve is always downward sloping. Its marginal revenue is always below the price. It is always profitable in the short run. It is the only seller of a good or service with no close substitutes available. It always experiences economies of scale.

what are at 5 common themes about FDI? (Foreign Direct Investment)

Which of the following statements about the FCF valuation model are true? Check all that apply....

Which of the following statements about the FCF valuation model are true? Check all that apply. A. The model has limited applicability because it fails to adjust for a firm's riskiness—particularly that created by managers' decisions to use debt in the firm's capital structure, or decisions regarding the payment of cash dividends. B. The model is useful because it examines the relationship between a company's risk, operating profitability, and value of the firm's operations. C. A company's FCFs are a...

Which of the following statements about the FCF valuation model are true? Check all that apply....

Which of the following statements about the FCF valuation model are true? Check all that apply. A. The FCF valuation model reflects the firm's riskiness—as it affects the company's intrinsic value—via the WACC variable. B. A company's FCFs are a function of how effectively managers control the firm's costs, manage its operating and nonoperating assets, and generate sales revenues. C. The model is useful because it demonstrates the relationship between quality of the decisions that managers make and the value...

1. Which of the following statements are true about short selling? Check all that apply: The...

1. Which of the following statements are true about short selling? Check all that apply: The investor involved in short selling anticipates that the share price will fall. Short selling is the sale of a security that is not owned by the seller. The investor involved in short selling anticipates that the share price will increase. Short selling means that an investor purchases securities using funds borrowed from her broker. Short sellers borrow securities and sell them immediately. 2. The...

Which of the following statements about the one-way ANOVA are correct? (Select all that apply.) a....

Which of the following statements about the one-way ANOVA are correct? (Select all that apply.) a. The results of the ANOVA F test does not tell us which groups are different or how different they are. b. The larger the variability within groups relative to the variability between groups, the larger the F test statistic tends to be. c. In one-way ANOVA, the mean square for error (MSE) gives a measure of the variation within the samples, while the mean...

Which of the following statements are correct about a sample weighting process? Select all that apply....

Which of the following statements are correct about a sample weighting process? Select all that apply. A. Respondents are weighted in terms of their answers to the survey questions. B. The process is to correct survey data for any possible sampling biases. C. The sample is checked against known demographic characteristics of the adult population. D. Respondents are weighted in terms of their demographic characteristics such as race, age and gender.

Which following statement(s) about SAS names is/are correct? Check all that apply. A. A SAS variable...

Which following statement(s) about SAS names is/are correct? Check all that apply. A. A SAS variable name starts with a letter or an underscore and continues with any combination of numbers, letters, or underscores as the same as library reference names and data set names. B. A SAS library references name must be 8 characters or less and begin with a letter or an underscore. C. A SAS data set names are 1 to 32 characters in length and are...

Describe a multinational corporation and foreign direct investment (FDI).

Subjects