What are the impacts of foreign direct investment? If you were an adviser to a multinational corporation that was considering foreign direct investments, what factors would you recommend that the MNC look at in determining where to invest? Why?
What will be an ideal response?
Ideal Answer: The ideal answer should:
1. Outline the purpose and influences of foreign direct investment.
2. Explain the particular considerations of an MNC in determining where to invest. For example, a student might discussfactories, real estate, and companies abroad that offer sizable ownership of stocks.
3. The complexities of investing in developing nations might be illuminated. For example, they offer the possibility of growth, but also instability.
4. Outline those particular characteristics that should be sought by the MNC.
5. Offer a concise summary and effective conclusion.
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