International Finance

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College of Administrative and Financial Sciences

Assignment-3

Course Name: International FinanceStudent’s Name:
Course Code: FIN406Student’s ID Number:
Semester: firstCRN:
Academic Year: 1444/1445 H

     For Instructor’s Use only

Instructor’s Name: Dr. Sulaiman Aldhawyan
Students’ Grade:                  / 10Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

  • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
  • Assignments submitted through email will not be accepted.
  • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
  • 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).
  • Submissions without this cover page will NOT be accepted.

Questions

Question 1 (5 points): There are two theories related to where Foreign Direct Investment (FDI) would be invested; one of them is behavioral approach; it is that firms first invest into closer countries which is considered as synch.  Explain how would this related to Saudi firms invested on other countries?  Do you think this theory applied to Saudi firms or they usually invest on western countries?

Question 2 (5 point): Would you think a local firm’s action of merging with an international firm justifiable to increase its concentration on the industry globally?  For example, if one of the Saudi banks (i.e. Bank AL Rajhi) merge with some other international bank (i.e. First Abu Dhabi Bank) to have higher level of market share in the banking industry.  Discuss.