
To Determine:
Which theory of FDI will either of the manager support needs to be analyzed.
Introduction:
You overhear the talk between your supervisor and the manager of another company. Your supervisor tells that he is fed up with companies outsourcing jobs to lower-wage nations. The other manager responds that if that decreases the company’s cost then it is good and fair since all the companies aim at making profits.
Suggestion:
Hence the manager opposing outsource will point out the following:
Ownership regulations imposed by host country
Higher taxes imposed on returns
The other manager favoring outsourcing will point out the following:
Favorable FDI policies formulated by the host country
Tax subsidies
Given information:
As per the data given the case is regarding outsourcing some of the jobs to low wage countries abroad.

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Chapter 7 Solutions
International Business: The Challenges of Globalization (8th Edition)
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