ADM 3318 Chapter Notes - Chapter 7: World Trade Organization, Human Capital, Oligopoly
13 Apr 2015
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Two main forms: greenfield investment: establishing a new operation in a foreign country, acquiring or merging with an existing firm in the foreign country. Flow of fdi: the amount of fdi undertaken over a given time period (normally a year): inflows of fdi: flows of fdi into a country, outflows of fdi: flows of fdi out of a country. Stock of fdi: the total accumulated value of foreign-owned assets at a given time. Firms see the whole world as their market: creation of a more fdi-friendly global environment (trade agreements and treaties). The direction of fdi: historically, most fdi has been directed at the developed nations around the world, as firms based in these countries invested in each other"s" markets. Usa is an attractive target for fdi inflows because it is large and wealthy and typically has a dynamic and stable economy.
