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To discuss: The difference in the percentage in foreign direct investment (FDI) inflows in Country I and Country J.
Introduction:
Gross fixed capital formation is the investment in the fixed assets like warehouses, retail stores, and factories.
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Explanation of Solution
The difference in the percentage in foreign direct investment (FDI) inflows in Country I and Country J are as follows:
The difference in the percentage in foreign direct investment (FDI) inflows in Country I and Country J mainly because of the government policies
Country I is basically a friendly FDI whereas Country J is not as such kind. Country J does not encourage inward FDI. Though these two countries are trade dependent economies with limited available resources Country I is comparable less mercantile in attitude with that of Country J. Country I has relatively low cost workforce, ample supply of labor and well educated.
Whereas work force of Country J is well educated is more expensive than the Country I.
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Chapter 8 Solutions
International Business: Competing in the Global Marketplace
- Foundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage LearningFoundations of Business - Standalone book (MindTa...MarketingISBN:9781285193946Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage LearningMarketingMarketingISBN:9780357033791Author:Pride, William MPublisher:South Western Educational Publishing
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