--%>

Advantages and disadvantages of FDI

State advantages and disadvantages of FDI as opposed to the licensing agreement with the foreign partner?

E

Expert

Verified

Main benefit of the FDI over licensing agreement with the foreign partner is that it offers protection against the possible interlopers. Main disadvantage of FDI is that it is time consuming and costly to develop the foreign presence in this manner and FDI is possibly more vulnerable to the political risk.

   Related Questions in Financial Accounting

  • Q : Assurance services Significant costs

    Significant costs associated with the disposal of asset. Accounting for asset retirement obligations requires estimating the cost and discounting estimate. The present value added to the asset's depreciable base and a liability is recorded for the obligation. Every year, interest expense is added

  • Q : Report on Digital Marketing Strategy

    Working individually you are required to produce a 2000 word report based on promoting the website you developed. (Your main objective is to increase the volume of traffic to your website).You should justify the best digital communication tools and criticall

  • Q : Maintaining the fixed exchange rate

    Explain why “Once  the capital markets are integrated, it becomes difficult for the country in order to maintain the fixed exchange rate”. 

  • Q : Operation of currency forward and

    Describe basic differences between operation of a currency forward market and a futures market.

  • Q : Introduction of the term Financial

    Give a brief introduction of the term ‘Financial Accounting’. And also write down its elements?

  • Q : Report on Business memo analyzing

    Write a Report on Business memo analyzing monthly sales of a company. Try to explain it with graphs.

  • Q : Link financial accounting and

    is there a link between financial accounting and programmed decision

  • Q : Prepare the journal entry to record the

    On December 31, 20x1, the Kat Co. purchase a group of four assets for a total cost of $1,000,000. An independent appraiser assesses the fair value of each asset asfollows: Asset Fair Value Land $350,000 Building 600,000 Equipment 200,000 Fixtures 150,000 Prepare the journal entry t