Question

In: Economics

Determinants of FDI: there are about six key traditional determinants of FDI (firm-level and plant-level scale...

  1. Determinants of FDI: there are about six key traditional determinants of FDI (firm-level and plant-level scale economies, trade costs, transportation costs, tax differentials, and cost of factors differentials) that are often used in empirical testing of FDI models. List and explain other factors (other than those listed above) that affect the location decisions of FDI/MNCs.

Solutions

Expert Solution

x


Related Solutions

Explain why high firm-level economies of scale promote both vertical and horizontal FDI whereas plant-level economies...
Explain why high firm-level economies of scale promote both vertical and horizontal FDI whereas plant-level economies of scale promote only one of them.
1. What are the four key environmental limitations to plant growth, considered at global- scale? 2....
1. What are the four key environmental limitations to plant growth, considered at global- scale? 2. What are the major environmental factors that influence decomposition rates in ecosystems? 3. Stomata are first seen in plant fossils from about 420 million year ago (Mya). List one advantage and one disadvantage of stomata. 4. Cuticles are first seen in plant fossils from about 450 million year ago (Mya). List one advantage and one disadvantage of cuticles. 5. An important evolutionary advance seen...
The carbon monoxide (CO) level in a manufacturing plant is supposed to be about 50 parts...
The carbon monoxide (CO) level in a manufacturing plant is supposed to be about 50 parts per million (ppm). However there is concern that actual CO levels are higher than the acceptable level.Five CO measurements are taken at various times during the day and reading are given below. 58 63 48 52 68 (a)At 5% level of significance test whether the mean CO level is higher that 60 ppm. (b)Find a 95% confidence interval for the mean CO level.
At a conceptual level what do you need to know about a project or a firm...
At a conceptual level what do you need to know about a project or a firm to tell whether it is expected to create value?
A firm producing computers considers a new investment which is about opening a new plant. The...
A firm producing computers considers a new investment which is about opening a new plant. The project’s lifetime is estimated as 5 years and requires 22 million $ as investment cost. Salvage value of the project is estimated as 4 million $ (which will be received in the sixth year) However the firm prefers to show salvage value only as 2 million $. The firm uses 5-year straight-line depreciation. It is estimated that the sales will be 12 million $...
An investment management firm CA is concerned about the risk level of a client’s equity portfolio....
An investment management firm CA is concerned about the risk level of a client’s equity portfolio. In June 2020, the client has 60% of this portfolio invested in two equity positions: ABC and EFG stocks. CA’s research provides the following views on the two stocks. ABC’s share price is very likely to go down in the next 3 months; EFG does not have immediate substantial downside risk but its upside potential is likely to be limited. Although the client refuses...
A firm producing digital cameras considers a new investment which is about opening a new plant....
A firm producing digital cameras considers a new investment which is about opening a new plant. The project’s lifetime is estimated as 5 years and requires 22 million TL as investment cost. Salvage value of the project is estimated as 4 million TL (which will be received in the sixth year) However firm prefers to show salvage value only as 2 million TL. Firm uses 5-year straight line depreciation. It is estimated that the sales will be 12 million TL...
A firm producing digital cameras considers a new investment which is about opening a new plant....
A firm producing digital cameras considers a new investment which is about opening a new plant. The project’s lifetime is estimated as 5 years and requires 22 million TL as investment cost. Salvage value of the project is estimated as 4 million TL (which will be received in the sixth year) However firm prefers to show salvage value only as 2 million TL. Firm uses 5-year straight line depreciation. It is estimated that the sales will be 12 million TL...
A firm producing digital cameras considers a new investment which is about opening a new plant....
A firm producing digital cameras considers a new investment which is about opening a new plant. The project’s lifetime is estimated as 5 years and requires 22 million TL as investment cost. Salvage value of the project is estimated as 4 million TL (which will be received in the sixth year) However firm prefers to show salvage value only as 2 million TL. Firm uses 5-year straight line depreciation. It is estimated that the sales will be 12 million TL...
A firm producing digital cameras considers a new investment which is about opening a new plant....
A firm producing digital cameras considers a new investment which is about opening a new plant. The project’s lifetime is estimated as 5 years and requires 22 million TL as investment cost. Salvage value of the project is estimated as 4 million TL (which will be received in the sixth year) However firm prefers to show salvage value only as 2 million TL. Firm uses 5-year straight line depreciation. It is estimated that the sales will be 12 million TL...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT