problem 1: Please describe Vernon's product life-cycle theory of FDI. Illustrate the strength and weakness of the theory?
problem 2: Why do you think the host country tends to resist cross-border acquisitions, instead of Greenfield investments?
problem 3: How would you incorporate political risk to the capital budgeting procedure of foreign investment projects?
problem 4: Please discuss and compare forward versus backward internalization.
problem 5: Discuss how you would incorporate currency exchange risk to the capital budgeting procedure of foreign investment.