Froggy Jumps Foreign Investment QuizOnline version Test your knowledge on foreign direct investment and strategic alliances! by sarah ayyad 1 What is foreign direct investment (FDI)? a Investment by a government in another country b Investment by a company in another country to establish a lasting interest c Investment by a company in its own country 2 What is a strategic alliance? a A merger between two companies b A hostile takeover of a company c A cooperative agreement between two or more companies 3 Which of the following is a benefit of foreign direct investment? a Reduced economic growth b Decreased competition c Increased job opportunities 4 What is the main purpose of a strategic alliance? a To eliminate competition b To increase government control c To gain a competitive advantage 5 Which of the following is an example of foreign direct investment? a A government providing financial aid to a foreign country b A company building a factory in another country c A company acquiring another company in the same country 6 What is the difference between foreign direct investment and portfolio investment? a FDI is only done by governments, while portfolio investment is done by companies b FDI is always a joint venture, while portfolio investment is always a merger c FDI involves establishing a lasting interest, while portfolio investment is more short-term 7 What is a joint venture? a A business arrangement between two or more companies b A company investing in its own country c A company acquiring another company 8 Which of the following is a disadvantage of strategic alliances? a Higher costs b Increased competition c Loss of control over business decisions 9 What is the goal of a foreign direct investment? a To increase domestic sales b To reduce government regulations c To establish a presence in a foreign market 10 What is the main reason companies form strategic alliances? a To increase government control b To access new markets or technologies c To eliminate competition 11 What is a joint venture? a A business partnership between two or more companies b A type of merger between two companies c A strategy to expand a company's global presence 12 What is the main purpose of a joint venture? a To acquire new customers b To eliminate competition in the market c To combine resources and expertise for mutual benefit 13 Which of the following is NOT a potential benefit of a joint venture? a Shared costs and risks b Access to new markets c Increased competition 14 What is a global strategy? a A strategy to dominate the domestic market b A plan to merge with international companies c A plan to expand business operations internationally 15 Why do companies pursue a joint venture global strategy? a To eliminate competition in the global market b To reduce costs and increase profits c To leverage local market knowledge and resources 16 What are the potential risks of a joint venture? a Disagreements between partners and cultural differences b Increased competition and market saturation c Lack of financial resources 17 Which of the following is NOT a factor to consider when forming a joint venture? a The legal and regulatory environment b The compatibility of partners' goals and values c The size of the company 18 What is a common form of joint venture in the automotive industry? a Marketing collaborations b Manufacturing partnerships c Research and development alliances 19 Which of the following is an example of a successful joint venture? a Kodak and Nokia b Sony Ericsson (Sony and Ericsson) c Blockbuster and Enron 20 What is the role of a joint venture agreement? a To establish a timeline for the partnership b To outline the terms and conditions of the partnership c To secure funding for the joint venture
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