The location-specific advantages argument associated with John Dunning helps explain why firms prefer FDI to licensing or to exporting
Indicate whether the statement is true or false.
FALSE
The implications of the theories of FDI for business practice are straightforward. First, the location-specific advantages argument associated with John Dunning does help explain the direction of FDI. However, the location-specific advantages argument does not explain why firms prefer FDI to licensing or to exporting.
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What is the NPV of the Airbus A380 project? The Airbus A380 is the largest civilian aircraft ever built. It can carry 555 passengers on two decks. Initial project investments were $13B. Assume that the initial investment was paid on Dec 31, 2008
Assume that Airbus will produce 60 aircraft per year for five years. Each aircraft will be sold for $230M and total operating costs are 75% of revenues. Assume that revenues and costs occur at year-end with the first revenues (and costs) occurring on Dec 31, 2009. What is the NPV of the project if Airbus' cost of capital is 11%? Calculate the NPV as of Dec 31, 2008. Ignore taxes and assume that there are no terminal year cash flows. A) -$2.799B B) -$0.249B C) $0.078B D) $2.751B E) $25.253B
In a just-in-time (JIT) inventory system, suppliers of direct materials must be willing to make fewer deliveries in larger lots
Indicate whether the statement is true or false