This week you have explored the purposes, benefits, and complexities of Foreign Direct Investment (FDI). Many firms chose to become Multinational Enterprises (MNE) versus using licensing options because of significant advantages related to ownership, location, and internalization (OLI). Read Closing Case: The Debate Over Investor-State Dispute Settlement pages 216-218, and answer the following questions:
1-What potential benefits encourage you to pursue FDI?
2-As an MNE executive, would you prefer to launch an FDI project in a country where ISDS is available or unavailable? Why?
3-Do the pros of ISDS outweigh its cons?