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FDI, regional integration

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Discussion Questions
1. Firms should not be investing abroad when there is a need for investment to create jobs at home. Discuss.
2. Do you think the successful conclusion of a multilateral agreement to liberalize regulations regarding FDI will benefit the world economy? Why?
3. What are the economic and political arguments for regional economic integration? Given these arguments, why don't we see more integration in the world economy?
4. How should a firm that has self-sufficient production facilities to in several EU countries respond to the creation of a single market? What are the constraints?

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1. Firms should not be investing abroad when there is a need for investment to create jobs at home. Discuss.

Even if there is a need for investment in the home country, firms do need to invest outside their home countries to take advantage of comparative advantage present outside their own countries or to explore new markets. Many a times, investment opportunities outside the country are far more attractive than domestic investments and thus, for-profit corporations need to take overseas investment decisions in the best interest of the stakeholders.

2. Do you think the successful conclusion of a multilateral agreement to liberalize regulations regarding FDI will benefit the world economy? Why?

Yes, it will definitely benefit the world economy by allowing free trade among nations and transferring wealth from developed nations to ...

Solution Summary

Firms should not be investing abroad when there is a need for investment to create jobs at home. Discuss.

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Ultimate goal of regional economic integration, FDI, neo-mercantilist, and centrally planned economy, mixed economy and market economy

International Business Management

1. What is the ultimate goal of regional economic integration? Identify three potential benefits of regional economic integration and three potential drawbacks.

2. What is foreign direct investment? Identify at least three motivations behind a company's decision to engage in FDI.

3. What types of policies might a country have in place to be called neo-mercantilist? Provide examples.

4. Define and provide specific country examples of a centrally planned economy, mixed economy and a market economy.

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