When a firm perceives that a foreign currency is _______, the firm may attempt direct foreign investment in that country...
When a firm perceives that a foreign currency is _______, the firm may attempt direct foreign investment in that country, as the initial outlay should be relatively _______.
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overvalued; high |
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overvalued; low |
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undervalued; high |
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undervalued; low |
Homework Answers
Ans undervalued; low
When a firm perceives that a foreign currency is undervalued, the firm may attempt direct foreign investment in that country, as the initial outlay should be relatively low.
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When a firm perceives that a foreign currency is _______, the firm may attempt direct foreign investment in that country...
Question 5 A country with relatively high interest rates will attract foreign investment which will: increase...
Question 5 A country with relatively high interest rates will attract foreign investment which will: increase the value of the currency in that country. decrease the value of the currency in that country. not affect the value of the currency in that country. increase the value of all foreign currencies.
Home country costs of Foreign Direct Investment include: Select one: a. The balance of payments suffers...
Home country costs of Foreign Direct Investment include: Select one: a. The balance of payments suffers from the initial capital outflow. b. The current account of the balance of payments suffers if the purpose of the foreign investment is to serve the home market at a low-cost production location. c. The current account of the balance of payments suffers if the FDI is a substitute for direct exports. d. All of the above
To hedge a____ in a foreign currency, a firm may ____ a currency futures contract for...
To hedge a____ in a foreign currency, a firm may ____ a currency futures contract for that currency. O receivable: sell O receivable; purchase O payable: sell O payable: purchase ○ A and D are both correct
When a firm is selecting a brand name to use in a foreign country, it may...
When a firm is selecting a brand name to use in a foreign country, it may be particularly important to research that culture's: a. attitudes and values b. aesthetics c. religion d. social organization
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Foreign direct investment means that a firm is: 1. investing assets directly into a foreign country’s organizations. 2. investing assets into a foreign country’s share market. 3. investing government funds to accelerate urban development of a foreign country. 4. allowing its foreign competitors to make use of its infrastructural facilities.
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In the shortrun, foreign direct investment tends to a- Decrease wage in the host country b-...
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?Direct foreign investment would typically be welcomed if: ?people from the country of the company's headquarter...
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Which of the following events would lead to an increase in direct foreign investment? Check all...
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3. Foreign direct investment Which of the following statements about foreign direct investment (FDI) are correct? Check all that apply. FDI is a poor strategy of technology transfer. Trade restrictions have no effect on foreign direct investment. U.S. FDI includes purchases of foreign government bonds by U.S. investors. FDI allows the parent firm to avoid tariffs on the products it sells in the host country. FDI is conducted in anticipation of future profits.
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