If BMW Chooses to Have Some FDI in China, Instead

question 23

Multiple Choice

If BMW chooses to have some FDI in China, instead of selling its technology to a Chinese firm for a fee, this is an example of:

• A) Ownership advantage
• B) Location advantage
• C) Internalization
• D) Market imperfection

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Definitions:

Allergies

An immune system response to a foreign substance that's not typically harmful to the body, such as pollen, food, or pet dander.

Asthma

A chronic respiratory condition characterized by episodes of airway constriction, causing wheezing, shortness of breath, chest tightness, and coughing.

Infant Mortality

The death of a child under the age of one year, measured as the number of deaths per 1,000 live births in a given year or region.

Inches

a unit of length in the Imperial and U.S. customary measurement systems, equivalent to 1/12 of a foot.