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1. Explain why many Asian countries set up Export Processing Zones and why China set up Special Economic Zones. What are the similarities and differences between EPZs and SEZs?
2. FDI:
(a) How do you define foreign direct investment (FDI)? Explain this concept.
(b) What are the typical motives for FDI from the perspectives of the host countries and MNCs respectively? Please discuss.
(c) What are typical modes (organizational forms) of FDI in China and what are their advantages and disadvantages? Explain.
Q. Based on the 1997 Crisis and your own experience, what are the main weaknesses of the East Asian economies? Answer: The limitation is little productivity increases most of
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