1. (a) What is a multinational enterprise?
(b) Define a vertical MNE, a horizontal MNE, and a diversified MNE and explain how they differ. Why would each be used?
(c) Is a firm that exports or licenses its product to a firm in another country a MNE?
2.
(a) Define proprietary assets.
(b) What role do proprietary assets play in motivating firms to become MNEs through Foreign Direct Investment? Explain the advantages of exchanging proprietary assets within a MNE ("internalization") versus an arm's length transaction between independent firms.
3. Describe the different (a) equity and (b) non-equity modes of entry that MNEs may use to enter foreign markets. Explain the advantages and disadvantages of each entry mode.
4. (a) What is a multidivisional (MD) organization? How does it differ from a functional or "F" organization? What are the advantages and disadvantages of each?
(b) Explain the two ways that multidivisional organizations can organize their foreign operations.
5. Explain the Heckscher-Ohlin model. Assume that there is a labor abundant foreign country (like Vietnam) and a capital abundant home country (like the U.S.) and two products: robots (a capital-intensive good) and clothes (a labor-intensive good).
Use graphs to show and explain how a tariff imposed by the foreign country affects the production of robots and clothes in both countries.
Attachment:- Instruction.rar