According to the United Nations Conference on Trade and Development (UNCTAD), developed countries as a whole pulled in 25% less in FDI the past year. However, Canada recorded its high inflow of FDI.

1. Why is there a high inflow of FDI in Canadian market? (Hint: Using location advantage theory to answer this question. Explain the definition of location advantage and name two specific location advantages of Canada) (2 points)

2. Are there costs of FDI to Canadian markets? Name two and explain. (2 points)

3. Using resource-based view and institutional view, explain the factors that determine the success and failure of FDI around the globe. (2 points)