2. Briefly discuss two reasons why a firm may decide to undertake FDI (foreign direct investment) and one of the concerns which may act as a deterrent to do so. 3. How can external economies of scale make autarchy (no international trade) preferable to free trade? Why would such a situation not be compatible with the assumptions of the Heckscher-Ohlin theory, specifying which assumptions and which results of the Heckscher-Ohlin theory leads to such an incompatibility.