ECON 401 Assignment 2, Version B
ECON 401 Assignment 2, Version B
Assignment 2 consists of four questions worth a total of 100 possible marks. It constitutes 10% of your final grade. You should complete and submit this assignment after you have completed all the learning activities for Unit 2.
Prepare a 300–350-word answer for each question, and submit all four responses in one Microsoft Word (or compatible) document.
- What are the major benefits and costs to a nation receiving FDI?
- Describe the major trends that have led to the growth in FDI over the last 30 years.
3 (a) What is the difference between a greenfield investment and an acquisition? Which form of investment is a firm more likely to choose? Be sure to substantiate your answer.
(b) How might the entry of Walmart into the Japanese retail sector benefit that sector? Who could lose as a result of Walmart’s entry?
- Compare and contrast the internalization theory of FDI and Knickerbocker’s theory of FDI (Hill, 2015). Which theory do you think offers the best explanation of the historical pattern of FDI? Why?
Reference
Hill, C. W. L. (2015). International business: Competing in the global marketplace (10th ed.). New York: McGraw-Hill Education