vThe questions to be answered are: Week 7–Question 1 (10 marks) (Question 3 fromTopic 6in the Pre-recorded Tutorial Questions) Describe both thecostsandbenefitsofForeign Direct Investment(FDI) to...

WRITTEN ASSIGNMENT
Table of content
Answer to Question 1    3
Answer to Question 2    4
Answer to Question 3    5
Answer to Question 4    6
Answer to Question 5    7
References    8
Answer to Question 1
The foreign direct investment is the source of blessing for the under developing as well as developing countries which required the sustainable support to develop their economy at a large extent (Song, Yang & Kwon, 2017). The FDI is also a beneficial aspect for the developed economy, which gets the opportunity to gather sustenance that is more economical from it. The Foreign Direct Investment is the great tools uses by the one nation to control the economic mobility of another nation. The sustainable development of another nation in return provides the beneficial growth to the home countries as well. The FDI is not only about the idea of the capital flow from one country to another. But the ideals of the Foreign Direct Investment is also directed to ensure the flow of the skills, advanced technological process, the skilled management of one country to the hosts country as well as a major bonding between the two nations.
The FDI has a great advantage over the home and the host countries. The two entities are largely affected in the positive manner (Zodrow & McKeehan, 2018). On one hand, the host country gets the advantage of the positive aspect for the economic growth of their nation. On the other hand, the home country gets the advantage of expanding into the foreign market, which leads to the merger and the acquisition of the large portion of the market.
Another beneficial reason of FDI is the creation of the job in the host country. The boosts up in the employment of the host country provide the greater advantage to the company investing in it, resulting in the growth of profit margin of the company. The profit incurred by the company helps in development of the economy of the home country as well.
The FDI helps in increasing the export of the good and products as well (Rudy, Miller & Wang, 2016). The foreign market in which the investment is done, the products created in the foreign market is not only for the consumption of that market. Often the products are for the global consumers. Hence, by investing in one particular market the products is served at the global level. This incurs profit for both the home and the host countries.
Answer to Question 2
The plays full act of the supply and demand of the customers is the serious matter for the companies, which are the core substance for the development. The proper analyzing of the market is the essential part for the growth of the company. Based on the market analysing the two terms that is localisation and the global standardisation of the products are strategically by the companies (Singh et al., 2017). These two strategies certainly make most sense on the way the market runs.
Depending on demand of the customers, the companies chose the localisation factor when the customer base of the company is diverse. The localization strategy is mostly helpful when the demand of the customers is different from one another. The existence of the customers are also varies with respect to the place. As the vast different is present among the demand of the customers the proper employment of the localised factors is the essential part for the companies to develop marketing strategy (Lasserre, 2017). The alteration of the products and services are done in the way that mostly suits the demand of the market. For the multinational combines the development of the strategy of loacalisation is providing the great advantage for the service provide by them. The basic of the companies’ service remains the same while the profitability is increase based on the way products and services are customised based on the locals demand. The suitable example that can be ascribed to the localisation of the products is the global food chain KFC which serve their basic fried chicken but with the twist of the local taste. The products serve by the company in Australia is not as same as served in US. It goes for the leading retail store Amazon, the services that they enlist to sell in the Western nations is not the same as compared to the Asian countries.
When the customers’ base is not so diverse and their preferences remain, same majorly with little or no amount of alteration required the firm select the global standarisation approach. The leading approach that helps in the reduction of the cost...