#1
Which theory suggests that international investment flows are driven by differences in factor endowments among countries?
Internalization Theory
Product Life Cycle Theory
Comparative Advantage Theory
Factor Proportions Theory
#2
Which theory suggests that multinational enterprises (MNEs) engage in foreign direct investment (FDI) to internalize market imperfections and protect their technological advantages?
Product Life Cycle Theory
Internalization Theory
Comparative Advantage Theory
Factor Proportions Theory
#3
According to the OLI framework, what does the 'O' stand for?
Operating
Organizational
Ownership
Oversight
#4
According to the Linder hypothesis, what drives international trade patterns?
Differences in factor endowments
Differences in consumer preferences
Differences in government policies
Differences in exchange rates
#5
According to the Linder hypothesis, what is the key factor that determines the similarity in consumer preferences between two countries?
Geographical proximity
Cultural similarities
Economic development
Political alliances
#6
According to the eclectic paradigm, what are the three factors influencing the choice of foreign market entry mode?
Ownership, location, and internalization
Export, licensing, and franchising
Import, joint venture, and acquisition
Competitive advantage, exchange rate, and inflation
#7
Which international investment theory emphasizes the role of innovation and product life cycles in driving foreign direct investment (FDI)?
Internalization Theory
Product Life Cycle Theory
Comparative Advantage Theory
Factor Proportions Theory
#8
What is the primary assumption of the Comparative Advantage Theory in the context of international trade?
Homogeneous factors of production
Perfect competition in markets
Fixed exchange rates
Government intervention in trade
#9
According to the theory of factor proportions, what factor determines a country's comparative advantage?
Labor
Capital
Land
Entrepreneurship
#10
Which theory suggests that firms invest abroad to exploit economies of scale and scope, as well as to gain efficiency and cost advantages?
Product Life Cycle Theory
Internalization Theory
Eclectic Paradigm
Monopolistic Advantage Theory
#11
What is the primary criticism of the Factor Proportions Theory?
Assumes constant factor endowments
Overemphasizes the role of innovation
Ignores the impact of factor mobility
Doesn't consider comparative advantage
#12
In the context of the OLI framework, what does 'L' stand for?
Location
Licensing
Lease
Labor
#13
According to the theory of comparative advantage, what should countries specialize in?
Producing goods with the highest absolute cost
Producing goods with the lowest opportunity cost
Producing goods with the highest market demand
Producing goods with the lowest production time
#14
In the context of international investment, what does the term 'Greenfield investment' refer to?
Investment in environmentally friendly projects
Investment in new facilities or projects from the ground up
Investment in agriculture
Investment in renewable energy sources
#15
Which international investment theory argues that firms engage in foreign direct investment (FDI) to acquire and exploit monopolistic advantages in foreign markets?
Internalization Theory
Product Life Cycle Theory
Comparative Advantage Theory
Monopolistic Advantage Theory
#16
In the context of international investment, what is the primary focus of the Market Imperfections Theory?
Technology transfer
Economies of scale
Internalization of market imperfections
Factor endowments
#17
Which theory argues that multinational enterprises (MNEs) engage in foreign direct investment (FDI) to exploit their ownership-specific advantages in foreign markets?
Internalization Theory
Product Life Cycle Theory
Eclectic Paradigm
Factor Proportions Theory