（考試時間3小時，滿分150分，全部寫在答題紙上，答在試題頁上無效）注：試卷中試題全部用英文作答。

Ⅰ.Single choice questions(10× 2 points=20 points)

1．Firms tend to choose FDI over export and license in the following situation except (   ).

A．Export is restricted by trade barriers or transport costs B．Location-specific advantage is not in home country, but in some other places C．Trade barriers have been significantly lowered since 1940’s D．License is risky due to the poor IPR protection in target market, or the competitive advantage is hard to codify or transfer

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Ⅱ.Briefly explain the terms(6× 5 points=30 points)

1．Customs union

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Ⅲ.Short questions(6× 10 points=60 points)

1．What are the advantages and disadvantages of Joint Venture compared with wholly owned subsidiary when entering into a new market?

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Ⅳ.Calculation and Graph Analysis (Answer all the questions in this part, please include the calculation method and process in your answer, 1× 10 points=10 points)

1．Calculate the effective rate of protection for the domestic MP3 player industry following the imposition of a 20 percent tariff on the imports of MP3 players. The cost of material inputs used in production of MP3 players in the country is $100 per unit and there is free trade in these material inputs. The world price of MP3 players is $175 per unit. Assume that the country is a small country.

Ⅴ.Essay questions(2× 15 points=30 points)

1．For a long time, Chinese government has taken various measures to upgrade the industrial structure. FDI policy is adjusted accordingly in order to help achieve this target. Please list two kinds of policies already in existence and evaluate its effectiveness. And propose at least 2 other measures which you believe necessary for the upgrading.

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