BUS 346 Chapter Notes - Chapter 7: Human Resource Management, Foreign Direct Investment, Warren Buffett
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Purchase of physical assets or significant amount of ownership of a company e. g. warren buffet buying a controlling share in a taiwanese electronics firm. Have propelled long-term growth in fdi & likely for future. Peaks: economic book (e. g. dot-com boom 1997-2000) increasing stock. What factors influence global flows of fdi? (1) increasing globalization. Globalization of the world economy encourages firms to use fdi as a way to. Low trade barriers companies realized that they could produce in the most prices more fdi. Lows: in times of economic instability (e. g. financial crisis 2009) fdi falls. Discussion question: what is the difference between foreign direct investment. Foreign direct investment is the purchase of physical assets or a significant and portfolio investment? amount of the ownership of a company in another country to gain a measure of management control. A portfolio investment is an investment that does not involve obtaining a degree of control in a company.