--%>

Advantages and disadvantages of FDI

State advantages and disadvantages of FDI as opposed to the licensing agreement with the foreign partner?

E

Expert

Verified

Main benefit of the FDI over licensing agreement with the foreign partner is that it offers protection against the possible interlopers. Main disadvantage of FDI is that it is time consuming and costly to develop the foreign presence in this manner and FDI is possibly more vulnerable to the political risk.

   Related Questions in Financial Accounting

  • Q : Calculate the PV You expect the price

    You expect the price of the stock 3 years from now to be $119.04 (i.e., you expect P ˆ   3  ?? = $119.04). Discounted at a 10% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $119.04.&nb

  • Q : Liabilities and Assets in Balance Sheet

    Why Liabilities are always on the left side and Assets on right side in the Balance Sheet?

  • Q : Partner Reflection HRD Programs If you

    If you are working with a partner for your assignment, please answer the following questions individually and submit your paper separately.1. Why did you want to work together? 2. How did you di

  • Q : Capitalization Method for Goodwill

    Capitalization Method: (Goodwill method): In this technique capitalized value of the firm is computed on the basis of normal rate of return. Difference between the capitalized value and real capital employed is termed as goodwill.

  • Q : Matlab Applications in Digital Signal

    Digital signal processing appears like a nightmare for students as it is most difficult and tricky subject in engineering core curriculum. If you are getting troubles in digital signal processing assignment or related project, then move

  • Q : Explain Project Accounting Project

    Project Accounting: It is sometimes termed to as job cost accounting and is the practice of making financial reports particularly designed to track financial growth of projects, which can then be utilized by managers to support project management.

  • Q : Balance of payments deficit or surplus

    Describe how country may run an overall balance of payments deficit or surplus.

  • Q : Incremental cash flows of capital

    Describe what you mean by the incremental cash flows of a capital project.

  • Q : Use of balance of payments Why it would

    Why it would be useful to examine a balance of payments of the country data?

  • Q : Currency trading at discount or at

    What is currency trading at discount or at premium in forward market?