What are the advantages, disadvantages and obstacles to regional integration. Provide examples where appropriate.

What are the advantage and disadvantages of the following methods of international expansion - exporting, licensing, FDI (greenfield) and FDI (acquisition). Provide examples where appropriate.

Once it undertakes FDI, a firm becomes a(n)

Question 4 options:

	outsourcer
	retail chain
	multinational enterprise
	offshore company
	national corporation

If the exchange rate changes so that fewer Canadian dollars are needed to buy a Chinese renminbi

	More dollars will be needed to buy the same quantity of Chinese goods
	Fewer renminbi will be needed to buy the same quantity of Canadian goods
	The renminbi has appreciated in value
	Fewer dollars will be needed to buy the same quantity of Chinese goods
	The dollar has depreciated in value

A firm will favor FDI over exporting as an entry strategy when

	the costs of establishing production facilities are high.
	the firm wants to occupy a position that falls inside the efficiency frontier.
	the transportation costs or trade barriers are high.
	there are problems associated with doing business in a different culture.