Assume that you produce plastic computer pieces for computer companies. The pieces require very little technology. Where would you like to establish DFI? (The point of this question is to force consideration of various characteristics that are incorporated in a DFI decision.)

What factors would be considered when deciding whether a subsidiary should reinvest earnings or remit them to the parent?

The DFI decision is related to marketing, finance, and manage­ment. What is the role of each area in the DFI decision? (This question is not explicitly covered in the text but allows students to consider the differences in disciplines as related to the broad corporate function of DFI.)

Do you think DFI is primarily intended to reduce production costs or increase sales? Discuss.

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When deciding where to establish a Direct Foreign Investment DFI for producing plastic computer pieces for computer companies various factors need to be considered including a Market access The potent... View the full answer