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Chapter 7

group 4

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1.type of investment involving the purchase of physical assets or stock of a company in another country to gain a measure of management control. (abbreviation)
3.a market that is said to operate at peak efficiency and where goods are readily and easily available
5.a company that just 20 years after it opened for business spawned 10 subsidiaries worldwide
7.a market imperfection such as tariffs
9.an imperfection that breakdown the efficiency of operation in an industry
11.rationalized production is a system of production in which each of a product’s components is produced where the cost of producing that component is ________.
13.Governments can enact laws or regulations to stop excessive FDI in order to protect culture, ______ companies, and jobs
14.specialized _______ is a unique competitive advantage of a company
16.the country Kirkwood decided early on that he wanted to do business in
17.the national account that records transactions involving the import and exports of goods and services, income receipts on assets abroad and income payments on foreign assets inside the country.
18.the balance of payments is a national ________ system that records all payments to entities in other countries and all receipts coming into the nation.
19.International product ____ cycle
2.current account _______ is when a country imports more goods and services and pays more abroad than it exports and receives from abroad.
3.type of investment that does not involve obtaining control
4.European Union (EU) nations, the United States, and _____ account for the vast majority of world inflows
6.national account that records transactions involving the purchase or sale of assets.
8.current account _______ is when a country exports more goods and services and receives more income from abroad than it imports and pays abroad.
10.a theory that states when a company will undertake FDI when it has location, ownership, and internalization advantages
12.when a firm tries to establish a dominant market by undertaking FDI is market _______
15.a type of integration that extends company activities into stages of production

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