Investing Abroad Directly

Choose any Multinational Enterprise (other than Coca-Cola) that engages in FDI andcomplete the questions below for your company of choice.Provide a copy of the articles used to complete the questions.Below is an example of Coca-Cola:Coca-Cola Co. owns a secret formula for its sodas and supports Coca-Cola brands.Coca-Cola Co. produces drink syrups, which it sells to licensed bottlers around the world.The licensed bottlers mix the syrups with local water and sell the resulting soft drinks in theircountries.Coca-Cola engages in Horizontal FDI in South Africa (in contrast with Apple, which has aprocess factory in California, a body factory in Taiwan, and an assembly factory in China toproduce its MacBooks).Ownership: The secret recipe and brand recognition.Location: Shipping Coca-Cola is expensive — it’s mostly water. Instead, use domestic water.Internalization: Coca-Cola recipe is easily stolen, so ship the syrup to bottlers and keep recipewithin the company.O, L, and I advantages are all strong in this case.Some of the positive benefits of Coca-Cola on the host country: (1) Brought jobs to thecommunities in South AfricaSome negative benefits of Coca-Cola on the host country: (1) Childhood obesityChapter 6Investing Abroad Directly1. Did the MNE engage in Horizontal FDI or Vertical FDI (upstream/downstream)?Draw their value chain to illustrate the type of FDI which they engaged in (see page 154in your book). (1 paragraphs)2. According to John Dunning’s framework, what are the ownership advantages that theMNE reaped? Give at least 3 examples directly from your Multinational Enterprise. (1paragraph)3. According to John Dunning’s framework, what are the locational advantages that theMNE reaped? Give at least 3 examples directly from your Multinational Enterprise. (1paragraph)4. According to John Dunning’s framework, what are the internationalizationadvantages that the MNE reaped? Give at least 3 examples directly from yourMultinational Enterprise. (1 paragraph)5. Provide at least two of the potential benefits and two negative affects that this MNEhas had on the host country. (1 paragraph)