Discussion question, and a 2 page report answering 2 questions. Original, we-written responses

DISCUSSION, DUE WEDNESDAY:

Question (300 WORDS MINIMUM, use powerpoint and lecture to help answer the questions in addition to your own research)

Q2. Offer your opinion on why economies of some less developed countries with strict restrictions on international trade and DFI are somewhat independent from economies of other countries. Why would MNCs desire to enter such countries? If these countries relaxed their restrictions, would their economies continue to be independent of other economies? Explain.

ANSWER THE FOLLOWING 2 QUESTIONS, DUE FRIDAY:

• Cite all your sources per APA (both in the body and at the end of the report)
• Professional papers are written in passive voice or as a third person. Omit “I”, “we”.
• Quality is more important than quantity. Approximate length of this report should be 2 pages, answering the following 2 questions.
  1. 1. Why are valuations of privatized businesses previously owned by the governments of developing countries more difficult than valuations of existing firms in developed countries?
     2. Some MNCs establish a manufacturing facility where there is a relatively low cost of labor. Yet, they sometimes close the facility later because the cost advantage dissipates. Why do you think the relative cost advantage of these countries is reduced over time? (Ignore possible exchange rate effects.)