Question

When jobs are created in local suppliers as a result of the FDI and when jobs are created because of increased local spending by employees of the MNE, the MNE has a(n) _____ effect on employment.

		outward
		direct
		inward
		direct and indirect

Greenfield investments are quicker to execute than brownfield investments.

True/False

Saving time by not producing poor-quality products that cannot be sold, lowering rework costs, lowering scrap costs, and lowering warranty costs are all the intended results of:

		total quality management.
		reengineering.
		logistics.
		total feature management.

If General Electric, a U.S. based corporation, purchased a 51 percent interest in a company in Italy, that purchase would be an example of a(n):

		minority acquisition.
		outright stake.
		majority acquisition.
		wholly-owned subsidiary.

Which of the following statements is true of EMCs?

		EMCs are export-import banks that manage foreign exchanges.
		EMCs are export specialists that act on behalf of their client firms.
		EMCs are transportation companies that engage in international business.
		An EMC is an intermediary that facilitates talks between two nations.

Answer 1

1) When jobs are created in local suppliers as a result of the FDI and when jobs are created because of increased local spending by employees of the MNE, the MNE has a(n) _____ effect on employment.

This will have an indirect effect on employment

A direct effect occur when a foreign firm employs a host citizen

Hence the answer is indirect