10. When a foreign currency is perceived by a firm to be undervalued, the firm may consider direct foreign investment in that country, as the initial outlay should be relatively low. a. True b. False

T More test answers on https://studyhippo.com/int_13/

direct foreign investment (DFI)

the purchase by foreigners of real estate and businesses in another countries More test answers on https://studyhippo.com/economics-unit-5/

14. Direct foreign investment is perceived by foreign governments to: a. be a cause of national problems. b. be a remedy for national problems. c. either A or B is possible. d. have no impact on national problems.

C More test answers on https://studyhippo.com/int_13/

11. Consider a country that presently has a high level of unemployment because of weak economic conditions. Its income levels are very low. This country may be an attractive target as a result of ____ motives by U.S. firms that engage in direct foreign investment. a. revenue-related b. cost-related c. A and B d. none of the above

B More test answers on https://studyhippo.com/int_13/

7. According to information in the text, a host government would be least likely to provide incentives for direct foreign investment (DFI) into its country if the firm planning DFI: a. would compete with local firms of the host country. b. would produce a good not currently available in the host country. c. would produce a good and export it to other countries. d. B and C

A More test answers on https://studyhippo.com/int_13/

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