COMMERCE 4SA3 Chapter Notes - Chapter 7: Foreign Direct Investment, Greenfield Project, Comparative Advantage
5 Nov 2018
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Foreign direct investment (fdi): occurs when a firm (source country) invests directly in facilities to produce or market a product in a foreign country (host country) 2 ways of fdi: greenfield investment: establishment of a wholly new operation in a foreign country, acquiring or merging with an existing firm in the foreign country. Flow of fdi: amount of fdi undertaken over a given time period (normally a year) Stock of fdi: the total accumulated value of foreign-owned assets at a given time. Outflow of fdi: flow of fdi out of a country. Inflow of fdi: flow of fdi into a country. Transnational corporations: a firm that owns business operations in more than one country but does not identify itself with one national home. Investment promotion agency: a government agency or non-profit organization whose mission is to attract investment to a country. Tnc ranked developing asia particularly well, with 60% respondents rating east and.
