Question 1
When compared to domestic firms, MNC productivity is generally
◦ lower in services but higher in manufacturing.
◦ lower.
◦ higher.
◦ about the same.
Question 2
The following charts show global FDI inflows in recent years in $ billions at current prices and exchange rates.
Of the following statements:
(i) Inflows of FDI go in waves.
(ii) By 2015, FDI to developing countries was bigger than FDI to developed countries.
(iii) FDI to developing countries is more volatile than that to developed countries
(iv) In simple money terms ('nominal terms'), world FDI was approximately 3 times higher in 2015 than in 1990.
(v) FDI flows to developing countries rose as a proportion of world FDI between 1990 and 2005.
(vi) The trend since 2007 is for developing countries' share of world FDI to increase.
Which are TRUE?
◦ All of them
◦ (ii), (iii), (iv), (vi)
◦ (i), (iii), (v), (v)
◦ (i), (ii), (v). (vi)
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