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True or False
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1
In the opening case about Starbucks, it was noted that they have the same FDI approach as Tim Horton's
A)True
B)False
2
The "flow of FDI" and the "stock of FDI" are the same thing
A)True
B)False
3
9/11 did not cause a downturn in FDI flows
A)True
B)False
4
Since the mid 1990's, regulatory changes have mostly increased, with the vast majority being favourable to FDI.
A)True
B)False
5
FDI has grown more rapidly than world trade.
A)True
B)False
6
China is expected to remain the principle recipient of FDI inflows 2007-2011
A)True
B)False
7
Outbound FDI from Canada decreased in recent years.
A)True
B)False
8
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
9
FDI is both expensive and risky when compared to exporting and licensing.
A)True
B)False
10
Unlike FDI, licensing protects a firm's technological know-how from a potential foreign competitor.
A)True
B)False
11
Firms for which licensing is a good option tend to be in high technology industries and global oligopolies.
A)True
B)False
12
A firm will favour FDI over exporting, as an entry strategy, when transportation costs make exporting unattractive
A)True
B)False
13
Foreign ownership of the airline industry in Canada is completely unrestricted.
A)True
B)False
14
Balance-of-payments keep track of payments to and receipts from other countries
A)True
B)False
15
FDI – the home country's trade position may deteriorate if the purpose of the foreign investment is to serve the home market from a low-cost production location.
A)True
B)False
16
It is increasingly common for governments to offer incentives to foreign firms to invest in their countries.
A)True
B)False
17
"Performance requirements" are one of the ways governments restrict FDI.
A)True
B)False





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