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MGT 321 SEU Establishment of Volkswagen Car Manufacturing in Russia Questions

MGT 321 SEU Establishment of Volkswagen Car Manufacturing in Russia Questions

Question Description

The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

Students must mention question number clearly in their answer

  • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
  • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
  • ·Citing of references is also necessary.
  • APA style
  • AssignmentQuestion(s):
    1. What factors underlay thedecision by Volkswagen to invest directly in automobile production inRussia? Why was FDI preferable to exporting from existing factories inGermany?
    2. Which theory (or theories) ofFDI best explain Volkswagen’s FDI in Russia?
    3. How do you think FDI by foreignautomobile companies might benefit the Russian economy? Is there anypotential downside to Russia from this inflow of FDI?
    4. Russia is largely dependent onoil exports to drive its economy forward. Given the sharp fall in globaloil prices that occurred in 2014 and 2015, what impact do you think thiswill have on FDI into Russia?

    Volkswagen has signaledthat it is going to stay the course in Russia, despite current political andeconomic headwinds. Why do you think it made this decision? What are the prosand cons of this decision? In your opinion, is it the correct decision?

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