Question 1

The ____________ theory of international production proposes states that for a firm to invest in facilities overseas,it must have three kinds of advantages.

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Question 2

____________ refers to the establishment of new facilities from the ground up.

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The answer of ____________ refers to the establishment of new...

Question 3

Discuss the advantages of focusing attention on a nation that is already a sizable purchaser of goods coming from the exporter's home country.

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Question 4

The ____________ theory suggests that strategic rivalry between firms in an oligopolistic industry will result in firms closely following and imitating each other's international investments to keep a competitor from gaining an advantage.

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Question 5

A(n)____________ is an industry with a limited number of competing firms.

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Question 6

____________ refers to the purchase of an existing business in another nation.

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Question 7

Explain the logic of mercantilism and why it is generally viewed as a deficient theory.

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Question 8

Dunning's theory of international production proposed that for a firm to invest in facilities overseas,it must have three kinds of advantages: ownership specific,location specific,and _______.

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Question 9

____________ theory states that for a firm to successfully invest overseas,it must have not only ownership of unique knowledge or resources,but also the ability to dynamically create,sustain,and exploit these capabilities over time.

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The answer of ____________ theory states that for a firm...

Question 10

____________ is a theory that foreign direct investment is made by firms in industries with relatively few competitors,due to their possession of technical and other advantages over indigenous firms.

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Question 11

Discuss the theory of absolute advantage and how it explains the basis for trade between nations.

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Question 12

____________ theory states that to obtain a higher return on its investment,a firm will transfer its superior knowledge to a foreign subsidiary that it controls,rather than sell it in the open market.

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Question 13

Discuss the keystone of international trade,the theory of comparative advantage.

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Question 14

Historically,foreign direct investment has followed ____________.

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Question 15

Discuss Dunning's eclectic theory of international production as a theory to explain flows of international trade and foreign direct investment.

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Quiz 2: International Trade and Investment