Assignment

1) What is an "infant industry" policy? Is it generally a good idea for the long-term health of developing economies? Explain pros and cons.

2) Give 3 specific ways in which the Internalization and Ownership parts of the OLI framework tie into VRIO based advantages,? Explain, giving at least 2 specific examples,

3) What is a "black hole" subsidiary? What should an MNC do if they identify such a subsidiary?

4) Give four reasons why and when a strong USD would cause US-based MNCs to worry.

5) What are three advantages and three disadvantages of Chinese inboundFDI for the USA (be specific). If the host country is a small developing country like Jamaica, would the disadvantages be any different? Explain briefly.

8) Guanxi is a form of collectivism that is based upon deep long term personal ties usually formed early in life. Should this be related to (a) Uncertainty avoidance and/or (b) recent government subsidies for private entrepreneurial activity. Take and firm position for both (a) and (b) and explain. The Hofstede framework should be particularly useful.