What are the advantages and disadvantages of limiting a firm’s activities to exporting compared to producing abroad?
Answer to relevant QuestionsWhat are the advantages and disadvantages of licensing and management contracts compared to producing abroad? An investment agreement spells out specific rights and responsibilities of both the foreign firm and the host government. What are the main financial policies that should be included in an investment agreement? a. Define protectionism and identify the industries that are typically protected. b. Explain the “infant industry” argument for protectionism. Financial strategies are directly related to the OLI Paradigm. a. Explain how proactive financial strategies are related to OLI. b. Explain how reactive financial strategies are related to OLI. Should the anticipated internal rate of return (IRR) for a proposed foreign project be compared to (1) alternative home country proposals, (2) returns earned by local companies in the same industry and/or risk class, or (3) ...
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