short answer. 70-80 words
Q1)
MNEs strive to take advantage of market imperfections in national markets for products, factors of production, and financial assets. Large international firms are better able to exploit such imperfections. What are their main competitive advantages?
Q2) OLI Paradigm. The OLI Paradigm is an attempt to create an overall framework to explain why MNEs choose FDI rather than serve foreign markets through alternative modes. Explain what is meant by the “O,” the “L,” and the “I” of he paradigm.
Q3) Exporting Versus Producing Abroad. What are the advantages and disadvantages of limiting a firm’s activities to exporting compared to producing
abroad?
Q4) Greenfield Investment versus Acquisition. What are the advantages and disadvantages of serving a foreign market through a greenfield foreign direct investment compared to an acquisition of a local firm in the target market?
Q5)
Lawful Compensation. Lawful expropriation must be accompanied by lawful compensation. What criteria have to be met to fulfill this requirement?
