INBU 3301 - MRU exam with complete solution 2024_2025.
1 keer bekeken 0 keer verkocht
Vak
INBU 3301
Instelling
INBU 3301
benefits to host country of FDI
1. Resource transfer effects
2. Employment effects
3. Balance of Payments Effects
The costs of FDI to a host country include...
1. Adverse effects of FDI on domestic companies within the host nation
2. Adverse effects on the Balance of Payments
3. Po...
INBU 3301 - MRU exam with complete
solution 2024/2025
benefits to host country of FDI
1. Resource transfer effects
2. Employment effects
3. Balance of Payments Effects
The costs of FDI to a host country include...
1. Adverse effects of FDI on domestic companies within the host nation
2. Adverse effects on the Balance of Payments
3. Possible Effect on national sovereignty and autonomy
Read More
Home Country Benefits of FDI
1. inward flow of foreign earnings as profits are repatriated
2. creates a demand for home country exports of capital equipment
3. learn valuable skills from foreign markets
Home Country FDI Costs
1. The home-country's balance of payments can suffer
2. Employment may also be negatively affected if the FDI replaces domestic
production
Outflows of FDI
flow of FDI out of a country
Inflows of FDI
flow of FDI into a country
Regional Economic Integration
agreements between countries in a geographic region to reduce tariff and non-tariff
barriers to the free flow of goods, services, and factors of production between each
other
Levels of Regional Integration
1. Free Trade Area
,2. Customs Union
3. Common Market
4. Economic Union
5. Political Union
Regional Economic Integration: Benefits
- Trade creation
- Political power
- Political cooperation
Regional Economic Integration: Drawbacks
- trade diversion
- shifting employment
- Lost sovereignty
The Euro - Advantages
- Price transparency: easier to compare prices
- Lowering transactions costs: avoid costs of changing currencies
- Increasing trade within the Eurozone
- Eliminate exchange rate fluctuations
The Euro - Disadvantages
- Countries lose their ability to control fiscal and monetary policy
- EU is not an optimal currency area
Optimal Currency Area
The geographic area in which a single currency would create the greatest economic
benefit
Internalization Theory
The argument that firms prefer FDI over licensing in order to retain control over know-
how, manufacturing, marketing, and strategy or because some firm capabilities are not
amenable to licensing.
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico,
New Zealand, Peru, Singapore and Vietnam.
The European Union
- an economic and political union (28 countries)
- allows free trade
- allows free movement of people
Five Key EU Institutions
1. The European Commission
2. The European Council
3. The Council of Ministers
4. The European Parliament
5. The Court of Justice
European Free Trade Association (EFTA)
, - Feared lost sovereignty
- Feared destructive rivalry
- Desired free-trade gains
- Cooperates with EU
- Iceland, Liechtenstein, Norway, Switzerland
The Comprehensive Economic and Trade Agreement (CETA)
- aspects of Canada-EU trade
- free trade agreement
- eliminate or reduce barriers
North American Free Trade Agreement (NAFTA)
Agreement that created a free-trade area among the United States, Canada, and
Mexico.
Asia-Pacific Economic Cooperation (APEC)
Group of 21 nations ringing the Pacific Ocean that accounts for over half of world trade
- Not designed as a free-trade bloc
- Strengthen multilateral trade system
- Liberalize trade and investment rules
Andean Community
- Colombia, Ecuador, Peru, and Bolivia
- operates as a customs union
- agreement with Mercosur to restart negotiations towards the creation of a free trade
area
Mercosur
- Brazil, Argentina, Paraguay and Uruguay
- originated as a free trade pact between Brazil and Argentina
- may be diverting trade rather than creating trade
Central America Free Trade Agreement (CAFTA-DR)
- Free trade agreement
- A treaty under international law
- United States and Central American countries;
• Costa Rica
• El Salvador
• Guatemala
• Honduras
• Nicaragua
▫︎The Dominican Republic joined later
Association of Southeast Asian Nations (ASEAN)
- wants to foster freer trade between member countries and to achieve some
cooperation in their industrial policies
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
√ Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, Bancontact of creditcard voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper tuition. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €11,11. Je zit daarna nergens aan vast.
