In: Finance
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