Investment Quiz | Globalization101

International investment (or capital flows) can be divided into four principal categories. Which of the following is NOT one of them?

Commercial loans (e.g. bank loans issued to foreign businesses or governments).
Duration investment.
Official flows (e.g. development assistance for developing nations).
Foreign direct investment (FDI).

Foreign investment has increased dramatically in recent decades.

True
False

Which of the following is NOT a concern about shifting production due to foreign investment?

Corporations in richer countries are shutting down their expensive domestic manufacturing operations in favor of sending them to developing countries, taking advantage of lower wages, less restrictive environmental regulations, etc.
The switch from domestic production to a greater reliance on imports can cause higher unemployment domestically.
Overseas workers may be exploited in the process.
Foreign investment can provide a firm with new markets and marketing channels, as well as cheaper facilities and access to new technology and skill.

When a country’s value of its currency and the quantity of its currency in circulation is tied to the nation’s reserve of gold, that country is said to be on the…

Gold standard
Gold mark
Gold base
Gold grade

Which of the following is NOT a factor direct investors look at when judging whether they will be able to operate in a foreign country?

Trade policy and privatization policy.
The quality of domestic accountability systems.
The functioning and efficiency of local markets.
Standards of treatment of foreign affiliates.

The Most Favored Nation treatment seeks to prevent discrimination among investors from different countries.

True
False

The Uruguay Round negotiations produced TRIMs, which stand for...

Agreement on Transaction-Related Investment Measures.
Agreement on Transposition-Related Investment Measures.
Agreement on Trade-Related Investment Measures.
Agreement on Traffic-Related Investment Measures.

Capital inflows, employment and production advantages are all...

Positive effects of competitive markets.
Positive effects of foreign investment.
Positive effects of foreign divestment.
Positive effects of equity valuation.

Which of the following is NOT a primary concern about foreign investment?

Financial volatility.
Contagion.
Consolidation
Problems with capital inflows.

EPZs, special arrangements set up to promote export industries, stands for...

Export Processing Zones.
Export Proceeding Zones.
Export Progression Zones.
Export Promotion Zones.

Which of the following is NOT a concern about shifting production due to foreign investment?

Corporations in richer countries are shutting down their expensive domestic manufacturing operations in favor of sending them to developing countries, taking advantage of lower wages, less restrictive environmental regulations, etc.
The switch from domestic production to a greater reliance on imports can cause higher unemployment domestically.
Overseas workers may be exploited in the process.
Foreign investment can provide a firm with new markets and marketing channels, as well as cheaper facilities and access to new technology and skill.