Homework: Introduction to International Business
Read Case: "Volkswagen in Russia", and answer the following questions:
A. What factors underlay the decision by Volkswagen to invest directly in automobile production in Russia? Why was FDI preferable to exporting from existing factories in Germany?
B. Which theory (or theories) of FDI best explain Volkswagen's FDI in Russia?
C. How do you think FDI by foreign automobile companies might benefit the Russian economy? Is there any potential downside to Russia from this inflow of FDI?
D. Russia is largely dependent on oil exports to drive its economy forward. Given the sharp fall in global oil prices that occurred in 2014 and 2015, what impact do you think this will have on FDI into Russia?
E. Volkswagen has signaled that it is going to stay the course in Russia, despite current political and economic headwinds. Why do you think it made this decision? What are the pros and cons of this decision? In your opinion, is it the correct decision?
Format your homework according to the give formatting requirements:
A. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
B. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
C. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
Attachment:- Case-Volkswagen-in-Russia.rar