Foreign Direct Investment and Cross-Border AcquisitionsTrue False必看课件资料 Questions.doc

Lecture 11- Foreign Direct Investment and Cross-Border Acquisitions 16- PAGE 1 ? 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Lecture 12 (Chapter 16) Foreign Direct Investment and Cross-Border Acquisitions ? True / False Questions? 1.?In the early 1980s, Honda, the Japanese automobile company, built an assembly plant in Marysville, Ohio, and began to produce cars for the North American market. As the production capacity at the Ohio plant expanded, Honda began to export its U.S.-manufactured cars to Japan.?True????False ? 2.?Shareholders of U.S. bidders (acquiring firms in MA) experience significant positive abnormal returns when firms expand into new industries and geographic markets.?True????False ? 3.?Shareholders of U.S. targets experience higher wealth gains when they are acquired by foreign firms than when acquired by U.S. firms.?True????False ? 4.?Cross-border acquisitions are generally found to be synergy-generating corporate activities.?True????False ? ? Multiple Choice Questions? 5.?Under a 1981 Voluntary Trade Agreement Japanese automobile manufacturers were not allowed to increase their exports to the U.S. market. As a result?A.?they exited the market.B.?Honda was motivated to circumvent the trade barriers.C.?Hondas FDI may have been part of an overall corporate strategy designed to bolster their competitive position vis-à-vis their domestic rivals such as Toyota.D.?both b) and c) ? 6.?Following Hondas FDI in the U.S.,?A.?The U.S. government imposed a Voluntary Trade Agreement under which Japanese automobile manufacturers were not allowed to increase their exports to the U.S. market.B.?Toyota and Nissan made direct investments in America.C.?Sales of Hondas declined.D.?none of the above ? 7.?Hondas decision to buil