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True or False Quiz
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1
It is called a foreign direct investment if ABC, Inc., a Canadian handheld device manufacturer, buys a South Korean chipmaker.
A)True
B)False
2
Since 1984, world trade has been growing more rapidly than FDI and world output.
A)True
B)False
3
There has been a surge of FDI into the world's developing nations, while developed nations still account for the largest share of FDI inflows.
A)True
B)False
4
UN estimates indicate that in 1999 and 2000, more than 50 percent of all FDI inflows were in the form of mergers and acquisitions.
A)True
B)False
5
Outbound FDI from Canada decreased in recent years.
A)True
B)False
6
In recent years, the U.S. has accounted for almost half of Canada’s foreign direct investment stock; this is lower than 10 years ago.
A)True
B)False
7
FDI is both expensive and risky when compared to exporting and licensing.
A)True
B)False
8
Unlike FDI, licensing protects a firm's technological know-how from a potential foreign competitor.
A)True
B)False
9
Firms for which licensing is a good option tend to be in high technology industries and global oligopolies.
A)True
B)False
10
Few countries have adopted a pure free market policy stance, and an increasing number of countries are gravitating toward the free market end of the spectrum and have liberalized their foreign investment regime.
A)True
B)False
11
Foreign ownership of the airline industry in Canada is completely unrestricted.
A)True
B)False





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