Roles and Downsides of FDI

Which is a DIRECT advantage for the FDI investors?

• Transfer of technology

• Job creation

• Tax incentives

• Developing countries economic boost

Why does everyone like to get as much tax relief as possible?

• Cut the cost, increase the disparity between revenues and costs

• Cut the cost, decrease the disparity between revenues and costs

• Cut the cost, decrease exports and sales

• Raise the cost, increase the disparity between revenues and costs

Which is NOT the role of FDI for the host country?

• Promoting economic growth

• Job Creation

• Transfer of technology

• Diversify the investment portfolio

“The presence of these foreign investors has not only boosted the country's manufacturing capabilities but has also provided access to new markets and trade opportunities”

TRUE or FALSE?

• TRUE

• FALSE

Multinational corporations (MNCs) such as Samsung & LG have established manufacturing plants in Vietnam will generate…

• Promoting economic growth

• Transfer of technology

• Job opportunities

• Tax incentives

Which advantage mainly depends on the host country?

• Ownership

• Internalization

• Location

Which is not a non-policy factor that affects FDI?

• Corruption

• Market size

• Political stability

• Tax policy

The Foreign investors can decide the ownership advantage

• TRUE

• FALSE

Which is not a characteristic of FDI?

• Seeking profit purpose

• Investors make their own decisions

•  Implement by governments

• Accompanied by technology transfer

A U.S.-based cellphone provider buying a chain of phone stores in China is an example of...

• Horizontal FDI

• Vertical FDI

• Conglomerate FDI