lecture 1

Question 1

When a firm takes a controlling interest, the investment is known as…

Answer 1

foreign direct investment (fdi).

Question 2

If 2 or more companies share ownership of the investment it is referred to as a

Answer 2

Joint venture.

Question 3

A non-controlling interest is called …

Answer 3

portfolio investment.

Question 4

Remuneration
of capital are:

Answer 4

dividends or interest

Question 5

Companies make …….. when investing

Answer 5

CAPEX

Question 6

Direct Investment

Answer 6

investor takes a controlling interest in a foreign company
(a subsidiary, a joint venture)

Question 7

Inward investment – FDI

Answer 7

a country receives a company’s direct investment from abroad

Question 8

Outward investment

Answer 8

a country sends a company’s direct investment abroad

Question 9

Portfolio Investment is

Answer 9

a non-controlling financial interest in another entity (investment funds, pension funds, hedge funds)

Question 10

Companies can also engage in international business by …

Answer 10

exporting or importing.

Question 11

Exports (and imports) can be either …

Answer 11

Goods (merchandises) or Services.