Foreign Direct Investment (FDI) CDS Questions

CDS Economy

Foreign Direct Investment (FDI) MCQ Questions


13.
Which of the following is a type of foreign investment?
A.
Merchandise exports
B.
Portfolio investment
C.
Trade in services
D.
None of these
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ANSWER :
B. Portfolio investment
14.
Which is not a benefit of international business for firms?
A.
Higher profits
B.
Utilization of surplus capacity
C.
Increased competition in domestic markets
D.
Improved vision
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ANSWER :
C. Increased competition in domestic markets
15.
Which one of these is an advantage of franchising?
A.
No control over local operations
B.
Low initial costs
C.
Retain control over quality standards
D.
No need for marketing
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ANSWER :
C. Retain control over quality standards
16.
What does FDI stand for?
A.
Foreign Domestic Investment
B.
Foreign Direct Investment
C.
Foreign Development Initiative
D.
Fiscal Development Index
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ANSWER :
B. Foreign Direct Investment
17.
Which factor does NOT distinguish international business from domestic business?
A.
Use of different currencies
B.
Varied political systems
C.
Uniform customer preferences
D.
Heterogeneous market conditions
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ANSWER :
C. Uniform customer preferences
18.
In which entry mode does a company grant rights to produce its product?
A.
Joint venture
B.
Licensing
C.
Franchising
D.
Wholly owned subsidiary
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ANSWER :
B. Licensing