International Trade Paper 1


Direct foreign investment allows firms to avoid


All of the following are valid reasons for expansion of international business by U.S. multinational corporations except to


Which one of the following statements concerning American Depository Receipts (ADRs) is false?


A British company currently has domestic operations only. It plans to invest equal amounts of money on projects either in the U.S. or in China. The company will select the country based on risk and return for its portfolio of domestic and international projects taken together. The risk reduction benefits of investing internationally (based on 50% of British domestic operations and 50% foreign operations) will be the greatest when there is perfectly


Technocrat, Inc., located in Belgium, currently manufactures products at its domestic plant and exports them to the U.S. since it is less expensive to produce at home. The company is considering the possibility of setting up a plant in the U.S. All of the following factors would encourage the company to consider direct foreign investment in the U.S. except the


All of the following are concerns that are unique to foreign investments except


The cost of capital for foreign investment projects is higher because of all of the following factors except


Which of the following is not a political risk of investing in a foreign country?


The benefits of direct foreign investment by multinational corporations include all of the following except


Which of the following is a benefit to the home country of international diversification by multinational companies?


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