AGB 302 WEEK 4QUIZ 2025 UPDATE|COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS (COMPLETE SOLUTIONS)
ASSURED SUCCESS|GRADE A+!!
Question 1
What occurs when a firm invests directly in new facilities to produce and/or market in a foreign
country?
A) Exporting
B) Licensing
C) Global Sourcing
D) Foreign Direct Investment (FDI)
E) Portfolio Investment
Correct Answer: D) Foreign Direct Investment (FDI)
Rationale: The provided text defines "Foreign Direct Investment (FDI)" as "Occurs
when a firm invests directly in new facilities to produce and and/or market in a
foreign country".
Question 2
What happens to a firm after a Foreign Direct Investment (FDI)?
A) It becomes a domestic enterprise.
B) It focuses solely on exporting.
C) It grants more licenses.
D) The firms becomes a multinational enterprise.
E) It reduces its global presence.
Correct Answer: D) The firms becomes a multinational enterprise
Rationale: The provided text states, "What happens after a Foreign Direct
Investment (FDI)? The firms becomes a multinational enterprise".
, Question 3
The establishment of a wholly new operation in a foreign country is referred to as:
A) Merger
B) Acquisition
C) Joint Venture
D) Greenfield Investments
E) Brownfield Development
Correct Answer: D) Greenfield Investments
Rationale: The provided text defines "Greenfield Investments" as "The
establishment of a wholly new operation in a foreign country".
Question 4
The amount of FDI undertaken over a given period is known as the:
A) Stock of FDI
B) Net FDI
C) Cumulative FDI
D) Flow of FDI
E) FDI Balance
Correct Answer: D) Flow of FDI
Rationale: The provided text defines "Flow of FDI" as "The amount of FDI
undertaken over a given period".
Question 5
The flow of FDI out of a country is called:
A) Inflows of FDI
QUESTIONS AND VERIFIED ANSWERS (COMPLETE SOLUTIONS)
ASSURED SUCCESS|GRADE A+!!
Question 1
What occurs when a firm invests directly in new facilities to produce and/or market in a foreign
country?
A) Exporting
B) Licensing
C) Global Sourcing
D) Foreign Direct Investment (FDI)
E) Portfolio Investment
Correct Answer: D) Foreign Direct Investment (FDI)
Rationale: The provided text defines "Foreign Direct Investment (FDI)" as "Occurs
when a firm invests directly in new facilities to produce and and/or market in a
foreign country".
Question 2
What happens to a firm after a Foreign Direct Investment (FDI)?
A) It becomes a domestic enterprise.
B) It focuses solely on exporting.
C) It grants more licenses.
D) The firms becomes a multinational enterprise.
E) It reduces its global presence.
Correct Answer: D) The firms becomes a multinational enterprise
Rationale: The provided text states, "What happens after a Foreign Direct
Investment (FDI)? The firms becomes a multinational enterprise".
, Question 3
The establishment of a wholly new operation in a foreign country is referred to as:
A) Merger
B) Acquisition
C) Joint Venture
D) Greenfield Investments
E) Brownfield Development
Correct Answer: D) Greenfield Investments
Rationale: The provided text defines "Greenfield Investments" as "The
establishment of a wholly new operation in a foreign country".
Question 4
The amount of FDI undertaken over a given period is known as the:
A) Stock of FDI
B) Net FDI
C) Cumulative FDI
D) Flow of FDI
E) FDI Balance
Correct Answer: D) Flow of FDI
Rationale: The provided text defines "Flow of FDI" as "The amount of FDI
undertaken over a given period".
Question 5
The flow of FDI out of a country is called:
A) Inflows of FDI
