Critical questions

      1- In 2008, in" rel="nofollow">inward FDI accounted for some 63.7 percent of gross fixed capital formation in" rel="nofollow">in Ireland, but only 4.1 percent in" rel="nofollow">in Japan (gross fixed capital formation refers to in" rel="nofollow">investments in" rel="nofollow">in fixed assets such as factories, warehouses, and retail stores). What do you thin" rel="nofollow">ink explain" rel="nofollow">ins this difference in" rel="nofollow">in FDI in" rel="nofollow">inflows in" rel="nofollow">into the two countries? 2- Compare and contrast these explanations of FDI: in" rel="nofollow">internalization theory and Knickerbocker's theory of FDI. Which theory do you thin" rel="nofollow">ink offersthe best explanation of the historical pattern of FDI? Why? 3- What are the strengths of the eclectic theory of FDI? Can you see any shortcomin" rel="nofollow">ings? How does the eclectic theory in" rel="nofollow">influence management practice? 4- Read the Management Focus on Cemex, and then answer the followin" rel="nofollow">ing questions: 1. Which theoretical explanation, or explanations, of FDI best explain" rel="nofollow">ins Cemex's FDI?2. What is the value that Cemex brin" rel="nofollow">ings to a host economy? Can you see any potential drawbacks of in" rel="nofollow">inward in" rel="nofollow">investment by Cemex in" rel="nofollow">in aneconomy?3. CEMEX has a strong preference for acquisitions over Greenfield ventures as an entry mode. Why? 5- You are the in" rel="nofollow">international manager of a U.S. busin" rel="nofollow">iness that has just developed a revolutionary new personal computer that can perform the samefunctions as existin" rel="nofollow">ing PCs but costs only half as much to manufacture. Several patents protect the unique design of this computer. Your CEO hasasked you to formulate a recommendation for how to expand in" rel="nofollow">into western Europe. Your options are (a) to export from the United States, (b) tolicense a European firm to manufacture and market the computer in" rel="nofollow">in Europe, or (c) to set up a wholly owned subsidiary in" rel="nofollow">in Europe. Evaluate thepros and cons of each alternative, and suggest a course of action to your CEO