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Explain the internalization theory of FDI. What are the weakness and strength of the theory?
Answer: As per to the internalization theory, firms which have intangible assets along with a public good property tend to undertake FDI to take benefit of the assets on a large scale and, at similar time, stop misappropriation of returns from the assets that may take place during arm’s length transactions in foreign countries. The theory can be efficient in describing green field investments, but not in describing mergers and acquisitions.
What factors would you consider in evaluating the political risk related with making FDI in a foreign country? Answer: Factors to be considered as follow: a) The host countr
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As starting a new business, is it better to leas or buy the business venture?. what factors should be considered. (Knowing that the equity finance is $150,000 and $250,000 could be
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