Question 1. Describe Vernon's product life-cycle theory of FDI. What are the strength and weakness of the theory?
Question 2. Why do you think the host country tends to resist cross-border acquisitions, rather than greenfield investments?
Question 3. How culd you incorporate political risk into the capital budgeting process of foreign investment projects?
Question 4. Discuss and compare forward vs. backward internalization.
Question 5. Show how would you incorporate currency exchange risk into the capital budgeting process of foreign investment.