QUESTION 18 Which of the following statements is true of the types of Foreign Direct Investments (FDI)? In the case of developing nations, more than two-thirds of FDI is in the form of cross-border mergers and acquisitions FDI flows into developed nations show patterns that are remarkably similar from those into developing nations. Greenfield investments are typically slower to execute than mergers and acquisitions The higher percentage of mergers and acquisitions in developing nations compared to developed nations indicate the low valuation of target firms in developing countries Mergers and acquisitions are generally riskier than greenfield investments QUESTION 19 30-day forward rates are the same as spot exchange rates True False QUESTION 20 if a firm determines that the net present value (NPV) of an FDI strategy is strictly positive, it should always choose FDI over licensing True False