Question: pls answers all question (Multinational corporation) SECTION B: CASE STUDY [Total = 60 marks] Please Answer All. CASE STUDY Trend of Foreign Direct Investment In


pls answers all question (Multinational corporation)
SECTION B: CASE STUDY [Total = 60 marks] Please Answer All. CASE STUDY Trend of Foreign Direct Investment In the past 20 years, there has been a remarkable increase in both the flow and stock of FDI in the world economy. Based on the UNCTAD report for 2006, the FDI inflows, which refer to the flow of FDI into a country, were substantial as they rose by 29%, reaching US$916 billion. Inflows to developed countries in 2005 amounted to US$542 billion, which is an increase of 37% from 2004, while inflows to developing countries rose to their highest level ever recorded at US$334 billion. Meanwhile, global FDI outflow, which indicates the flow of FDI out of a country, amounted to US$779 billion. Developed countries remained the leading sources for global FDI outflow. The rapid growth of FDI in recent years is due to several reasons such as the general decline in trade barriers, shifts toward democratic political institutions, free market economy policies in developing nations, and the effects of globalization in the world economy. The decline in trade barriers has allowed companies to invest directly in foreign markets without encountering many barriers. Direct investments are normally implement through development of facilities and plants in foreign markets, often referred to as a greenfield approach. Examples of other forms of active control in foreign corporations are mergers, acquisitions, or international joint ventures. Source: Adapted from International Business, Second Edition 2010 Case Study Questions. Please Answer All. From the case study above, we know that there has been a remarkable increase in foreign direct investment (FDI) all over the world. 1. According to the Statistics Department of Malaysia, foreign direct investment (FDI) into Malaysia in 2019 rose 3.1% to RM31.7bil from RM30.70bil in 2018. Explain any FIVE (5) determinants of Foreign Direct Investment in Malaysia? [15 marks] There are ral modes of entering international ma kets such as direct exporting, licensing, strategic acquisitions and more. Elaborate FIVE (5) differences between foreign direct investment (FDI) and strategic acquisitions? [15 marks] 3. Investment of a foreign company with its new technologies and products has several advantages and disadvantages. Discuss THREE (3) advantages and TWO (2) disadvantages of foreign direct investment (FDI). [15 marks] 3. Several factors can draw companies into the international arena. Analyse factors should a company review before deciding to go global. [15 marks]Step by Step Solution
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