HI2011 – Tutorial Questions Assignment 2 XXXXXXXXXX1 Assessment Task – Tutorial Questions Assignment 2 Unit Code: HI2011 Unit Name: International and Global Business Assignment: Tutorial Questions...

MANAGEMENT
Table of Contents
Answer to Question 1    3
Answer to Question 2    3
Answer to Question 3    3
Answer to Question 4    3
Answer to Question 5    3
References    4
Answer to Question 1
Costs of FDI in the home countries
The costs of the FDI in the home countries are the acquisition of physical assets. These include the planting and the equipment services. This equally includes the operational control will be ultimately leading and residing with the parent company in the home country. The costs have been also including that for any kind of business purposes the residents of any community have to pay a minimum of advantage taxes. This tax has been falling under the commercial and the commodity goods. The government of the respective country, which has been satiated by it, has handled the management of the taxes.
Costs of FDI in the host countries
There have been three costs which have been concerning for the host countries. First, an adverse effect on competition is there. This aspect summarized that the MNCs investing with other countries may have an excess of power and kill off competition. Foreign investors can cause deadly effects on the competition. Second, an adverse effect on the balance of payments is there. This aspect deals with the foreign subsidiary imports from a substantial number of inputs from a
oad. Third, FDI is losing national independence (JIN and Yoon, 2018). National sovereignty has a direct power over the foreign multinational enterprise. These are the costs, which are significant for the business.
Benefits of FDI in the home countries
The benefits, which have been seen in the home countries, are facilities of the internet services which have been used for the transaction and regulations. Additionally, the technological advancement and making costs lesser is there (Flora et al. 2020). FDI helps in the stimulation of the competition, capital that can be needed for the opening up of the businesses and any kind of managerial skills. These have the positive effect on the home country in a greater way in order to have the smooth flow of the business and helps in leveling up the economic growth of the country.
Benefits of FDI in the host countries
For the host countries, FDI has been making a benefit on the economy. In order to gain more of the positives from the FDI, the countries have started to make more of the suitable laws and the policies of FDI. This attempted to reach most of the suitable a
angements to get a high interest of the makers of the FDI (Flora et al. 2020). The economy, which has been supporting the liberal market, said that the gain of the FDI is to preponderate the costs, which has the practical nationalism as an ideology, which has been unable to imply with the prospects. The benefits have been divided into transfer, effect of employment, effects on the balance of payments and competition.
Answer to Question 2
A localization strategy actually makes sense for the industries, which serve in the markets which have huge differences across nations in terms of tastes, values and business regulations. The localization has been used in these kinds of industries when the customers actually do diverse things in many places (Liu et al. 2019). This is the reason as to why the company in any industry has a diverse base of customers, which will most likely employ aspects of localization to alter their products or services to fulfill the specific demands of the market. These are the reasons, which have been taken into consideration first.
Following from the above statements, a company, which does not have incredibly diverse clients, will not need to consider these aspects of business and the reach of the customer. In case of the value markets and the share markets,, the localization strategy focuses on increasing the profitability by customizing a firm’s goods or services as they provide a good match to tastes and preferences in different national markets (Liu et al., 2018). Companies like KFC, MTV, Motorola and P&G. Additionally, the Automobile industry, have also used this localization strategy and the retails are equally using it.
A global standardization strategy is effective when the differences among the countries are meager and competition is actually global. Global standardization strategy actually makes sense in some of the detailed aspects. First, firms implement economics of scale in order to reduce the cost in case of the research of the product, development of the product, marketing of the product and productions. Secondly, this has been effective when the firms have an effective control of the product global marketing (Steenkamp, 2017). Implementing this...