Identify the 4 correct statements
1. A cross-border investment is considered as FDI if more than 50% of the capital of a foreign company is acquired.
2. Market-seeking FDI is also labelled as horizontal investment.
3. Internalisation advantages in the OLI model are related to the role that international differences in costs in global production decisions play.
4. The OLI predicts that licencing is the preferred entry mode when there are no internalisation advantages.
5. The "new new trade theory" predicts that the less productive a company is the more likely it will offshore its production.
6. A fully integrated global supply chain may be very complex to manage.
7. "Special Economic Zones" are an instrument to attract FDI.
8. "Transfer pricing" signifies that a company is charging the same prices in domestic and foreign markets

Question

Identify the 4 correct statements 
1. A cross-border investment is considered as FDI if more than 50% of the capital of a foreign company is acquired.
2. Market-seeking FDI is also labelled as horizontal investment.
3. Internalisation advantages in the OLI model are related to the role that international differences in costs in global production decisions play.
4. The OLI predicts that licencing is the preferred entry mode when there are no internalisation advantages.
5. The "new new trade theory" predicts that the less productive a company is the more likely it will offshore its production.
6. A fully integrated global supply chain may be very complex to manage.
7. "Special Economic Zones" are an instrument to attract FDI.
8. "Transfer pricing" signifies that a company is charging the same prices in domestic and foreign markets

Quizplus · Accepted Answer

The Answer of Identify the 4 correct statements 
1. A cross-border investment is considered as FDI if more than 50% of the capital of a foreign company is acquired.
2. Market-seeking FDI is also labelled as horizontal investment.
3. Internalisation advantages in the OLI model are related to the role that international differences in costs in global production decisions play.
4. The OLI predicts that licencing is the preferred entry mode when there are no internalisation advantages.
5. The "new new trade theory" predicts that the less productive a company is the more likely it will offshore its production.
6. A fully integrated global supply chain may be very complex to manage.
7. "Special Economic Zones" are an instrument to attract FDI.
8. "Transfer pricing" signifies that a company is charging the same prices in domestic and foreign markets

Identify the 4 Correct Statements