Fdi Pro and Con
Module Code: MN307
Module Title: International Business Finance
Course: BA (Hons) International Business Management (Full Time)
Lecturer: Ms Alice Lee
Student name: Lam Hon Yan
Student No.: 06028486
Group: 3
Hand in date: 12 Jan 2007
Word count: 2588
Content
1. Introduction P.1
2. Motivations of using FDI as cross border investment P.2
3. FDI impact on nation states P.6 3.1 Advantage of FDI to host country P.6 3.2 Disadvantage of FDI to host country P.9 3.3 Advantage & Disadvantage of FDI to home country P.10
4. Root causes of financial crisis P.11
5. Methods for survival in financial crisis P.13
6. Impact on financial crisis to international trading P.13
7. Conclusion P.14
Reference P.15
1. Introduction
This report is specific for JKX Oil & Gas. She is a petroleum company focusing on exploration and production in countries of the ex Soviet Union and the Ukraine.
Her management is considering weather following her competitor expansion into Far East and Oceania.
In this report I am going to show analysis in two sections. The first section is analysis on motivation of cross border investment in using FDI and find out the reasons of home countries & host countries encourage company to FDI. The second section is evaluating any key causes of a financial crisis and show how financial crisis affect the international trading.
2. Motivations of using FDI as cross border investment
Basically FDI could be divide into three type of motivates they are market-seeking, resource-seeking, and efficiency-seeking (Malllampally and Sauvant 1999). Other than above there are a lot of academics theories, which could explain the motives behind the FDI by enterprises. In these theories I have chosen five theories that is common to be use for explain the motivations of FDI.
First is international product life cycle theory (Vernon 1966),
Module Title: International Business Finance
Course: BA (Hons) International Business Management (Full Time)
Lecturer: Ms Alice Lee
Student name: Lam Hon Yan
Student No.: 06028486
Group: 3
Hand in date: 12 Jan 2007
Word count: 2588
Content
1. Introduction P.1
2. Motivations of using FDI as cross border investment P.2
3. FDI impact on nation states P.6 3.1 Advantage of FDI to host country P.6 3.2 Disadvantage of FDI to host country P.9 3.3 Advantage & Disadvantage of FDI to home country P.10
4. Root causes of financial crisis P.11
5. Methods for survival in financial crisis P.13
6. Impact on financial crisis to international trading P.13
7. Conclusion P.14
Reference P.15
1. Introduction
This report is specific for JKX Oil & Gas. She is a petroleum company focusing on exploration and production in countries of the ex Soviet Union and the Ukraine.
Her management is considering weather following her competitor expansion into Far East and Oceania.
In this report I am going to show analysis in two sections. The first section is analysis on motivation of cross border investment in using FDI and find out the reasons of home countries & host countries encourage company to FDI. The second section is evaluating any key causes of a financial crisis and show how financial crisis affect the international trading.
2. Motivations of using FDI as cross border investment
Basically FDI could be divide into three type of motivates they are market-seeking, resource-seeking, and efficiency-seeking (Malllampally and Sauvant 1999). Other than above there are a lot of academics theories, which could explain the motives behind the FDI by enterprises. In these theories I have chosen five theories that is common to be use for explain the motivations of FDI.
First is international product life cycle theory (Vernon 1966),