4 page only apa

Focus in IP- 5

Recently, China attracted a great deal of FDI because
foreign firms to (1) take advantage of Inexpensive labor and resources, and also (2)
gain access to the Chinese market that are often not accessible otherwise.

Long- term investment projects require a thorough
understanding of all attributes of doing business in that country, including
import/export restrictions, labor relations, supplier financing, tax rules,
depreial schedules, currencyproperties
and restrains, and sources of short-term and long-term debt, to name a few.
China is currency the focus of investment and market penetratrtion strategies of
multinational firm worldwide including. Acme, your supervisor has asked you
together information on some of these factors that your company or any MNE
would want to consider when doing business in china.

In order to answer the question in your IP-5, you need to
search for the following terms using the internet or other sources:

1.
Vernon’s product life- cycle theory of FDI.

2.
Forward
internalization

3.
Backward internalization

In- ip-5, you need to address the
followings question.

Recently, China attracted a
great deal of FDI because foreign firms want to (I) take advantage of
inexpensive labor and resources, and also (ii) gain access to the Chinese
market that is often not accessible otherwise.

1.Please
explain Vernon’s product life-cycle theory of FDI. What are the strength and
weakness of the theory?

2.Why do
you think the host country tends to resist cross-border acquisitions, rather
than greenfield investments?

3.How would
you incorporate political risk into the capital budgeting process of foreign
investment projects?

4.Please
discuss and compare forward vs. backward internalization.

5.Discuss
how would you incorporate currency exchange risk into the capital budgeting
process of foreign investment.

Provide explanations on the
following:

Foreign exchange risk and how it
is related to capital budgeting

Political risks and how it is
related to capital budgeting.

APA, ASSIGNMENT 4
PAGE ONLY

Attachments:

IP-5-WEEK-5.docx