Q14. With licensing the ________ is likely to be lower than with FDI because of lower profits, however, the ________ is likely to be higher due to a greater return per dollar invested. a. cost of capital; NPV b. NPV; IRR c. IRR; cost of capital d. IRR; NPV Q15. Joint ventures are motivated only by takeover defenses. a. true b. false Q16. Which of the following combinations of cost and control reflect the choice of a greenfield foreign direct investment? a. low cost, high control b. high cost, low control c. high cost, high control d. medium cost, high control Q17. The Scandinavian countries such as Denmark, Finland, and Sweden, are perceived as having the lowest level of corruption in the world. a. true b. false Q18. FAST (Free and Secure Trade) is a. a business-led initiative designed to complement and speed the CIP program. b. a container security initiative focusing on freight and state trade. c. a U.S. customs program designed to encourage companies to pack shipped goods in easy to inspect quick-review containers. d. a joint U.S. and Canada program designed to expedite customs clearance of goods. Q19. A ________ loan, also known as ________ is a parent-to-affiliate loan channeled through a financial intermediary such as a large commercial bank. a. link financing; parallel loan b. fronting; link financing c. fronting; a back-to-back loan d. parallel; a back-to-back loan Q20. A country can react to the potential for blocked funds prior to making an investment, during operations, or by investing in the local country in assets that maintain their value. a. true b. false Q21. Which of the following could be considered an example of forced reinvestment if the blockage of funds was expected to be temporary? a. Purchase of local money market instruments and short-term loans. b. A lumber cutting company subsequently builds a paper mill with blocked funds. c. Vertical reinvestment by an automobile manufacturer to buy parts suppliers and showrooms. d. All of the above. Q22. Due to the impressive activities undertaken by governments, international agencies, and businesses to assess political risk, the prediction track record of changes in country-specific risk is quite impressive and uncannily accurate at predicting significant changes. a. true b. false Q23. Which of the following is NOT one of the three main country-specific risks as outlined by your authors? a. thin equity base b. cultural differences c. transfer risk d. protectionism