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Tutorial 7 Teaching Week 7 Foreign Direct Investment
Tutorial 7 Teaching Week 7 Foreign Direct Investment
Teaching Week 7
Foreign direct investment
Divide the students into the groups of 4-5. Ask them to answer the questions in groups
1. What are the types of international capital movements?
Give brief explanations of each of them.
2. Tell the type of capital movement in each case below:
a. GM owns 25% shares of JV GM Uzbekistan
b. Migrants from Uzbekistan living in Russian Federation sent home (to Uzbekistan)
3.059 billion USD in 2015
c. Asian Development Bank delivers a technical assistance grant for feasibility study to
water supply project in Bukhara and Samarkand regions
d. EGIS (French engineering company) buys 10% shares of the local company called
VBM engineering in Uzbekistan (no voting power is given to EGIS)
3. Explain the differences between FDI and portfolio investment. What are the advantages
and disadvantages of each of them?
4. What are the modes of entry for FDI? Explain each of them in brief detail.
5. What are the types of expansion (while doing FDI)? Explain each of them in brief detail.
6. Explain the graph in detail, explaining the welfare effect of FDI / Capital movement: