Questions for chapter review

1. Explain what organization resources are transferred to another country?
2. Why the transfer of resources to another country is considered a motivator for peace?
3. What are the benefits for a country that accepts foreign investment?
4. What are the threats to local companies of the country that accepts investments?
5. What are the main differences between offshoring and exporting?
6. What are the two main types of foreign investment?
7. What investments are considered strategic foreign investments?
8. What are the reasons for the organization to make strategic foreign investments?
9. What investments are considered portfolio or speculative investments?
10. What are the reasons for making portfolio investments abroad?
11. How is strategic foreign direct investment similar to an alliance?
12. Why is portfolio investment in aggregated organization indexes considered less risky than investing in a specific single company?
13. What is the difference between investing through the stock exchange in portfolio investments and strategic investments in a selected company?
14. What factors of the economic environment are important when choosing another country for investment?
15. What factors of the geopolitical environment are important when choosing another country for investment? What are the threats from these factors?
16. What factors of the legal environment are important when choosing another country for investment? Explain the threats because of these factors.
17. Explain the motivation of natural resource seekers to invest abroad.
18. Explain the motivation of human resource seeking investors abroad.
19. Explain the motivation of prospective suppliers to invest abroad.
20. Explain the motivation of aspiring consumers to invest abroad.
21. Explain the motivation of those seeking logistical efficiency to invest abroad.
22. Explain the motivation of those seeking strategic assets and competitiveness to invest abroad.
23. Explain the OLI paradigm.
24. Explain green field investments.
25. Explain brown field investments.
26. What are the advantages of Greenfield investments compared to investing in an already operating company? Also, describe the disadvantages.
27. Explain what a free economic zone is. Describe the benefits availed by the investor in a free economic zone.
28. What type of strategies that countries use to attract foreign investors?
29. List the challenges that organizations face when they merge or acquire each other. Compare the two cases.
30. Explain the methods to evaluate company during M&A.

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