Question 8 of 10 Question 9 of 10 Question 10 of 10 A greenfield FDI is when: A.

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Question 8 of 10

Question 9 of 10

Question 10 of 10

A greenfield FDI is when: A.a company or government entity purchases or leases existing production facilities to launch a new production activity. B.a company invests in the agricultural sector of a particular country. C.a company makes financial contributions to environmental causes in a particular country. D.companies enter into developing countries to build new factories or stores from scratch. E.companies make financial contributions to charitable organizations in a foreign country. Reset Selection

Question 8 of 10

1.0 Points In the early 1950s, the United States was abundant in capital and, therefore, should have been exporting more capital-intensive goods. However, contrary to the factor proportions theory, the United States was importing more capital-intensive goods and exporting labor-intensive goods. This is an example of: A.the product life cycle. B.mercantilism. C.the Leontief Paradox. D.protectionism. E.neo-mercantilism. Reset Selection

Question 9 of 10

1.0 Points Which of the following trade theories best explains the rivalry between iPhones and Androids in the U.S. smartphone market that spurs great innovation and competitiveness? A.Absolute Advantage B.Porter's National Competitive Advantage Theory C.Mercantilism D.Country Similarity E.Product Life Cycle F.Factor Proportions Reset Selection

Question 10 of 10

1.0 Points Two men live alone on an isolated island. To survive they must undertake a few basic economic activities like water carrying, fishing, cooking and shelter construction and maintenance. The first man is young, strong, and educated. He is also, faster, better, more productive at everything. He has an absolute advantage in all activities. The second man is old, weak, and uneducated. He has an absolute disadvantage in all economic activities. In some activities the difference between the two is great; in others it is small. Which of the following is true? A.The young man should specialize in tasks at which he is most productive, while the older man will concentrate on tasks where his productivity is only a little less than that of the young man. The young man will not benefit anything from the trade, but it will help the older man greatly. B.The young man should specialize in tasks at which he is a little more productive than the older man, while the older man should concentrate on tasks where his productivity is much less than that of the young man. Both men would benefit from the trade. C.The young man is better to do everything by himself and ignores the older men. D.The young man should specialize in tasks at which he is most productive, while the older man will concentrate on tasks where his productivity is only a little less than that of the young man. Both men would benefit from the trade.

Explanation / Answer

A greenfield FDI is when companies enter into developing countries to build new factories or stores from scratch. The companies enter into developing nations to establish new facilities and create long term jobs. So the correct option is therefore D.

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