Explain the difference between internal and external economies of scale using graphs for each of the concepts.

(5 Marks)

(a)Identify and explain the type of FDI for the following cases:

(i) General Motors opens up a new assembling plant in New Zealand

(ii) Nike builds a factory in Bangladesh

(iii) Nescafe invest in a coffee plantation in Vietnam

(iv) H&M purchase the Indian Company Fab India, which also produces similar products as H& M does

(v) A Russian oligarch buys $ 10 Million of Fonterra stock

(10 Marks)

{a} Explain the difference between internal and external economies of scale using graphs for each of the concepts. {5 Marks} [b] Identify and explain the type of FDI for the following cases: {i} General Motors opens up a new assembling plant in New Eealand [ii] Hike builds a factory in Bangladesh [iii] Nescafe invest in a coffee plantation in Vietnam [iv] HELM purchase the Indian Company Fab IndiaIr which also produces similar products as H31 M does [it] A Russian oligarch buys $ 1!] Million of Fonterra stock {10 Marks}