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Multiple Choice Quiz
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1
Regarding the annual outflows of foreign direct investment,
A)the proportion that comes from developing nations doubled from 1997 to 2004.
B)the proportion that comes from the United States and Europe is nearly 30 percent.
C)much of the recent increase has been associated with mergers, acquisitions, and other international investments made by companies in industries facing increased competition and global consolidation.
D)nearly half went to China and its territories in 2004.
2
In using GDP per capita as a basis for making comparisons of nations' economies, all of the following statements hold true except
A)extreme care must be exercised to avoid drawing unwarranted conclusions.
B)realize statistical systems in many developing countries are deficient.
C)realize the reliability of the data provided is often questionable.
D)that markets around the world are growing, providing equally good opportunities for all kinds of business.
3
In-bond plants (maquiladoras):
A)are allowed to import parts and processed materials without import duties.
B)requires import duty to be paid on the finished products on the value added in Mexico.
C)provide competitive production sites due to lower cost labor.
D)are located on the border between Mexico and the U.S.
4
Increasing wage rates in Mexico have affected maquiladoras in the following ways:
A)They have encouraged Mexican firms to establish U. S. plants to supply the Mexican market.
B)They have encouraged higher value work in the Mexican maquiladoras plants.
C)They have encouraged American plants in Mexico to supply the Mexican market.
D)They have encouraged the emergence of Mexico as the nation having the best labor cost advantage.
5
Methods for supplying foreign markets may be categorized in just two activities:
A)Exporting to a foreign market and manufacturing in it.
B)Exporting goods to a foreign market and exporting services to it.
C)Manufacturing in a foreign market and licensing technology.
D)Establishing joint ventures and wholly-owned production facilities.





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