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In: Finance

1. Some argue that foreign direct investment to obtain cheaperlabour is not a strategy that...

1. Some argue that foreign direct investment to obtain cheaper labour is not a strategy that can last a long time. Why would this be? What are some of the advantages and disadvantages of FDI for the purpose of getting cheaper labour inputs?

2. Political instability is a barrier to trade. Which of the following factors would be most important in deciding whether to invest in a country? Explain why you think as you do.

A national election

A country’s trade disputes with another country

A recession in the country

A change in the country’s political system

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