Part One: 03 Discussion – Foreign Investments – Due Mon 11/27/17
(Needs to be 150 words)
Two types of foreign investment exist: Foreign Portfolio Investments (FPI) and Foreign Direct Investments (FDI). The difference between these two is determined by the level control sought and gained by the investor. FPI is passive while FDI is more aggressive in its methods of acquisitions. Because of its aggressiveness, most investment theories are based on the assumptions of FDI. Therefore, strategies to acquire goods, services, and capital have an active sense of investment.
With the above in mind, identify and discuss an investment strategy. Express the advantages of your strategy based on an international investment theory.
Part Two: 03 Discussion – The Dominance of the iPod – Due Mon 11/2717
Apple’s iPod has claimed a large share of the MP3 player market. Which firm-based trade theory would best fit the dominance that Apple has in this market? Why?
Part Three: 03 Written Assignment – Comparison of Two Systems
The foreign exchange system contains the prices of currencies of other countries. These prices fluctuate based on demand and supply. Individuals buy and sell currency as they would any other commodity. Instead of a product like in other markets of world, the product here is currency, thus the feel of an exchange when it is actually a purchase.
With this in mind, create a 2-3 page response to the following:
- Compare and contrast the Foreign Exchange Market and an international market of your choice.
- Determine an advantage and disadvantage for each.
Your final assignment should be proofread for correct spelling, grammar, and punctuation.