Limiting Foreign Control Of Key Industreis

Question 1

Dependencia theory

Answer 1

Emerging economies have no power in dealing with MNE

Question 2

Examples of key industries

Answer 2

Transportation, mass media, energy production, defense, healthcare

Question 3

Limitations to prevent FDI in key industries

Answer 3

1. regulatory approval for FDI
2. prohibition by law
3. golden shares
4. veto power

Question 4

Gazprom

Answer 4

Russian state owned company, runs critical energy infrastructure in Germany

Question 5

Reaction of Germany after eu placed sanctions on Russia

Answer 5

Commercial relationship to Russia at risk - > government will take control over Gazprom Germania

Question 6

Bargaining school theory

Answer 6

Terms for foreign investors operations depend on how much investor and host country need each others assets

Question 7

Benefits of not limiting FDI

Answer 7

• MNE must adhere to local laws
• local staff have power to influence startegy of MNE in host country
• liquidity for country
• when privatizing companies, often counties sell stakes in stocks market to spread shareholder base as much as possible

Question 8

China has recently opened up more or less industries for foreign investment

Answer 8

Has opened up more industries for FDI

Question 9

TAP history

Answer 9

1953: private and on stock market, but majority from state
1975: public company
1991: on stockmarket, state as main shareholder
2015: privatiziation of 61%, then decision reverted and know wholly owned by govt again
2020: Portuguese state majority of TAP capital

Question 10

Is TAP part for star alliance

Answer 10

Yes

Question 11

TAP is market leader bw…

Answer 11

Europe and Brazil