Foreign Managers Trained in the Latest Management Techniques Can Often

question 101

Multiple Choice

Foreign managers trained in the latest management techniques can often help to improve the efficiency of operations in the host country,whether those operations are acquired or greenfield developments.This benefit of FDI falls into the category of

• A)employment effects.
• B)balance-of-payments effects.
• C)effects on competition.
• D)resource transfer effects.
• E)autonomy effects.

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Definitions:

Product Transformation Curve

Another term for the "production possibility frontier," which shows the different quantities of two goods that can be produced with a given set of resources.

Economies of Scope

Cost advantages that enterprises obtain due to efficiency improvements gained by producing a wider variety of goods or services.

Joint Cost Function

A cost function that describes the total cost of producing multiple products together, where the costs cannot be separated for each product.

Economies of Scope

Cost advantages that enterprises obtain due to a broad scope of operations or the variety of products and services offered.