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International Business Ch 7 by charles W L Hills

International Business Ch 7 by charles W L Hills

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Published by GohÄr ÈjÁz
International Business Ch 7 by charles W L Hills
International Business Ch 7 by charles W L Hills

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Categories:Business/Law
Published by: GohÄr ÈjÁz on Dec 24, 2012
Copyright:Attribution Non-commercial

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01/09/2014

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Global Business Today
 
6e
by Charles W.L. Hill
 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
 
 
Chapter 7
Foreign DirectInvestment
 
 
7-3 
Introduction
Question:What is foreign direct investment?
Foreign direct investment (FDI)occurs when afirm invests directly in new facilities to produceand/or market in a foreign country
Once a firm undertakes FDI it becomes amultinational enterprise
There are two forms of FDI
 Agreenfield investment
 
(the establishment of a wholly new operation in a foreign country)
 Acquisitionor merging with an existing firm inthe foreign country

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