Poli 150 Nov 28

Poli 150 Nov 28 - Final Exam Three Parts Current Events...

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Final Exam Three Parts Current Events (since November 12): 10 pts Multiple choice: 60 questions, 1 pt each 25 covering material since Exam 2 35 covering material from the rest of the semester, or addressing overarching themes Essay: 1 question, multiple parts, 30 pts November 28, 2007 FDI-Causes/Motivations -Locational advantages. These include… Access to natural resources (extractive sector) Access to consumer markets (“horizontal FDI”), gaining access to that market Reduces transportation costs Avoids trade barriers -Efficiency considerations (vertical integration) Break supply chain into various parts Produce according to local comparative advantages Firms will consider labor costs for a given level of productivity, not just overall labor costs. Firms can reduce their fixed costs per unit if they produce on a larger scale. -Market imperfections Retain control over intangible assets (knowledge, reputation)
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Poli 150 Nov 28 - Final Exam Three Parts Current Events...

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