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Foreign Direct Investment (Fdi) Quiz Questions

This quiz on Foreign Direct Investment (FDI) explores key aspects such as reasons behind China's high FDI, types of FDI, and trade flow components. It assesses understanding of trade imbalances and value addition in international...

Questions: 20 | Attempts: 1092 | Last updated: Jul 22, 2025

Sample Question 1
1. China has received a great deal of FDI. Why?

Firms such as automakers can take advantage of low wages and also avoid tariffs if their production is finished in China.

The U.S. government has encouraged domestic firms to buy foreign firms.

Loans to purchase manufacturing facilities in other nations are subsidized by the U.S. government.

China has a system of business that is free from corruption and interference by the Chinese government.

Sample Question 2
2. Which of the following is an example of horizontal FDI?

Ford Motor Company acquires the British firm Jaguar.

Lenovo, a Chinese company, acquires IBM's personal computing business.

The Venezuelan government acquires the Venezuelan operations of BP Petroleum, a British firm.

General Motors Corporation builds a plant in China to supply Buicks to the Chinese market.

Sample Question 3
Which of the following is included in trade flows?

Sales or purchases of goods by residents of different countries

Sales of goods by domestic residents to foreign residents

Purchases of services by domestic residents from foreigners

Sales or purchases of goods by residents of different countries, sales of goods by domestic residents to foreign residents, and purchases of services by domestic residents from foreigners

All of the above