Kasapreko Company Limited, a wholly owned Ghanaian company is considering a foreign direct investment in the West African country of Sierra Leone. Explain two ways that this investment will benefit the host country. What two disadvantages are the host country likely to suffer from this foreign direct investment?

Principles of Economics (MindTap Course List)
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Author:N. Gregory Mankiw
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Chapter31: Open-Economy Macroeconomics: Basic Concepts
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1. Kasapreko Company Limited, a wholly owned Ghanaian company is considering a
foreign direct investment in the West African country of Sierra Leone. Explain two
ways that this investment will benefit the host country. What two disadvantages are
the host country likely to suffer from this foreign direct investment?
2. Calender Technologies Ltd, producers of household consumer products are
considering international expansion into the Gambia. A local Gambian firm
has expressed the desire to buy the licensing rights from Calender
Technologies Ltd. However, the C.E.O of Calender Technologies Ltd prefers
to do a foreign direct investment in the Gambia instead of licensing. Explain
four reasons why the C.E.O. desires foreign direct investment rather than
licensing its brand to the Gambian firm.
3. Explain the exporting mode of international expansion and give three
reasons why a company might opt for foreign direct investment rather than
exports.
Transcribed Image Text:-ial Qns for #4 1. Kasapreko Company Limited, a wholly owned Ghanaian company is considering a foreign direct investment in the West African country of Sierra Leone. Explain two ways that this investment will benefit the host country. What two disadvantages are the host country likely to suffer from this foreign direct investment? 2. Calender Technologies Ltd, producers of household consumer products are considering international expansion into the Gambia. A local Gambian firm has expressed the desire to buy the licensing rights from Calender Technologies Ltd. However, the C.E.O of Calender Technologies Ltd prefers to do a foreign direct investment in the Gambia instead of licensing. Explain four reasons why the C.E.O. desires foreign direct investment rather than licensing its brand to the Gambian firm. 3. Explain the exporting mode of international expansion and give three reasons why a company might opt for foreign direct investment rather than exports.
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