Assignment: Short written response
1) Provide examples of how multinational corporations (MNC) reduce their translation, transaction and economic exposures.
2) Explain the difference (at least 4) between foreign direct investment (FDI) and portfolio investment (PI).
Collect the required the data from the Australian Bureau of Statistics (ABS) website (you may also need to explore other government sources such as the Reserve Bank of Australia, Austrade, etc.) and answer the following questions:
3) List the ten largest countries by value of Foreign Direct Investment in Australian in the years 2011 and 2014. You need to provide the list of countries as well as the amount of FDI invested in AUD.
4) What factors do you think account for these countries investing large amounts of FDI in Australia?
5) Have the list of investing countries changed over the concerned period? What might account for these changes?
6) Do you expect a change to the 2014 list over the next 5 years? Explain.