IBM 416 Lecture Notes - Lecture 6: Foreign Direct Investment, Joint Venture, Greenfield Project
17 Mar 2016
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Document Summary
What are the definitions, characteristics, and examples of the following: foreign direct investment. Strategy in which the firm establishes a physical presence abroad by acquiring productive assets such as capital, technology, labor, land, plant, and equipment: international collaborative ventures. A cross-border business alliance in which partnering firms pool their resources and share costs and risks of a venture: joint venture. A form of collaboration between two or more firms to create a jointly-owned enterprise: international portfolio investment, corporate social responsibility, greenfield investment. The firm invests to build a new manufacturing, marketing or administrative facility, as opposed to acquiring existing facilities: merger. Special type of acquisition in which two firms join to form a new, larger company: acquisition. Direct investment or purchase an existing company or facility: equity participation. Acquisition of partial ownership in an existing firm: wholly owned direct investment. Investors fully owns the foreign assets: equity joint venture.
