1.Describe the 4 alternative Foreign Direct Investment (FDI) strategies defined by Morrison? What are the advantages and disadvantages of each of the strategies?

Here is a reference answer): The four strategies of FDI are subsidiary, green field investment, acquisition and joint venture. The advantage for subsidiary is the benefit for a smaller company to join a large corporate company. Such as providing buying power, marketing, and employees. The disadvantage is the limited freedom management of a large company. Including decision made. The advantage for greenfield investment is a high level of control over business operations and manufacturing.The disadvantages would be the high risk of investment. The advantages for the acquisition is the market power built quickly and gaining resources.The disadvantages are the cost of acquisition can climb steeply. For the Joint venture, the advantage could also be more resources such as staff and technology. The disadvantage is the restriction on flexibility and individual business suffers in the process.