What are the advantages and disadvantages of licensing and management contracts compared to producing abroad?
Answer to relevant QuestionsWhat are the advantages and disadvantages of forming a joint venture to serve a foreign market compared to serving that market with a wholly owned production subsidiary? Answer the following questions: a. What is OPIC? b. What types of political risks can OPIC insure against? a. What are the traditional methods for countries to implement protectionism? b. What are some typical non-tariff barriers to trade? c. How can MNEs overcome host country protectionism? The decision about where to invest abroad is influenced by behavioral factors. a. Explain the behavioral approach to FDI. b. Explain the international network theory explanation of FDI. In the context of evaluating foreign investment proposals, how should a multinational firm evaluate cash flows in the host foreign country that are blocked from being repatriated to the firm’s home country?
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