International business 3

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YFO008

Business Finance

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Part One: 03 Discussion - Foreign Investments - Due Mon 11/27/17

(Needs to be 150 words)

Two types of foreign investment exist: Foreign Portfolio Investments (FPI) and Foreign Direct Investments (FDI). The difference between these two is determined by the level control sought and gained by the investor. FPI is passive while FDI is more aggressive in its methods of acquisitions. Because of its aggressiveness, most investment theories are based on the assumptions of FDI. Therefore, strategies to acquire goods, services, and capital have an active sense of investment.

With the above in mind, identify and discuss an investment strategy. Express the advantages of your strategy based on an international investment theory.

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Part Two: 03 Discussion - The Dominance of the iPod - Due Mon 11/2717

(150 words)

Apple's iPod has claimed a large share of the MP3 player market. Which firm-based trade theory would best fit the dominance that Apple has in this market? Why?

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Part Three: 03 Written Assignment - Comparison of Two Systems

The foreign exchange system contains the prices of currencies of other countries. These prices fluctuate based on demand and supply. Individuals buy and sell currency as they would any other commodity. Instead of a product like in other markets of world, the product here is currency, thus the feel of an exchange when it is actually a purchase.

With this in mind, create a 2-3 page response to the following:

  1. Compare and contrast the Foreign Exchange Market and an international market of your choice.
  2. Determine an advantage and disadvantage for each.

Your final assignment should be proofread for correct spelling, grammar, and punctuation.


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Explanation & Answer

please find the attached file. i look forward to working with you again. good bye

Running head: INTERNATIONAL BUSINESS

International business
Name
Instructor
Date

1

INTERNATIONAL BUSINESS

2
Part One: Foreign Investments

Foreign Portfolio Investments (FPI) and Foreign Direct Investments (FDI) are the two
types of investment strategies that exist in foreign investment. Before a business enterprise or a
person starts a business, it is essential to decide which investment strategy is the best. My
investment strategy is the Foreign Direct Investment because it is more aggressive and highly
preferred by many business enterprises globally than the FPI. FDI is a real investment that is
non-resident where foreigners invest in a particular country with investments such as buildings
and machinery. This strategy usually aims at acquiring an everlasting benefit in an enterprise.
Multinational companies are the one that mostly uses the FDI strategy and thus it is the best
strategy for someone who intends to run the global business.

Foreign direct investment is the best investment strategy because of its advantages over
other approaches according to international investment theory. For instance, FDI benefits both
the global economy, investors, and customers. Since the shareholders usually seek the best profit,
capital is directed to the business with the best growth vision. Additionally, this strategy ensures
that extra benefit with low risk benefits the investor. Furthermore, FDI strategy enhances
diversification of business in a particular country thus increasing return with minimal r...


Anonymous
Awesome! Perfect study aid.

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