Answer 4 questions. You have to write answers based on the text book “International Business”.
The text book “International Business” is published by McGraw-Hill Australia Pty Ltd. The authors are Peter Dowling, Liesch, Gray, Hill. ISBN 9780074717547
QUESTION １:
Foreign direct investment (FDI) occurs when a firm invests directly in new facilities to produce and/or market in a foreign country. FDI may take the form of Greenfield investments (i.e., the establishment of a new operation in a foreign country) or mergers with/acquisitions of existing firms in the foreign country. Please answer the following questions regarding FDI.
Discuss the benefits and costs (inward) FDI offers/imposes on host countries. (10 marks)
Discuss the benefits and costs (outward) FDI offers/imposes on home countries. (10 marks)
Likewise, address some of the home-country and host-country policy options for encouraging/restricting outward and inward FDI, respectively. (5 marks)
QUESTION ２:
If a firm is changing its strategy from an international to a transnational strategy, what are the most important challenges it is likely to face in implementing this change? How can the firm overcome these challenges? (25 marks)
QUESTION 3:
You are working as a general manager for the headquarter organization of Toyota in Japan. The firm has recently opened operations in the emerging market of Argentina. You have been asked by the CEO to recommend someone from your department to send to the firm’s subsidiary there. What aspects would you need to consider in identifying the right person for the job? Moreover, how would you prepare the selected individual for this overseas assignment? Discuss. (25 marks)
QUESTION 4:
In a world of zero transportation costs, no trade barriers, and nontrivial differences between nations with regards to factor conditions (i.e., resources such as land, labour, and capital), firms must expand internationally if they are to survive. Discuss. (25 marks)