Chapter 17 Foreign Direct Investment and Political Risk

Please provide your discussion for the following questions on 14^th edition.

1, 6, 13, & 14

1.Evolving into Multinationalism. As a firm evolves from purely domestic into a true multinational enterprise, it must consider (1) its competitive advantages, (2) its production location, (3) the type of control it wants to have over any foreign operations, and (4) how much monetary capital to invest abroad. Explain how each of these considerations is important to the success of foreign operations.

6.OLI Paradigm. The OLI Paradigm is an attempt to create an overall framework to explain why MNEs choose FDI rather than serve foreign markets through alternative modes.

13.Cross-Border Strategic Alliance. The term "cross-border strategic alliance" conveys different meanings to different observers. What are the meanings?

14.Governance Risk.

a.Define what is meant by the term "governance risk."

b.What is the most important type of governance risk?