Question 1: What factors underlay the decision by Volkswagen to invest directly in automobile
production in Russia? Why was FDI preferable to exporting from existing factories in
Question 2: Which theory (or theories) of FDI best explains Volkswagen’s FDI in Russia?
Question 3: How do you think FDI by foreign automobile companies might benefit the Russian
economy? Is there any potential downside to Russia from the inflow of FDI?
Question 4: Russia is largely dependent on oil exports to drive its economy forward. Given the
sharp fall in global oil prices that occurred in 2014 and 2015, what impact do you think this will have on FDI in Russia?
Question 5: Volkswagen has signaled that it is going to stay the course in Russia. Despite
current political and economic headwinds. Why do you think they made this decision? In your
opinion, is this the correct decision?