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Published by Aimen Farooq

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Categories:Types, Business/Law
Published by: Aimen Farooq on Sep 18, 2010
Copyright:Attribution Non-commercial


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CH 7Foreign Direct Investment 
Importance of FDI in world economy
Theories used to explain FDI
Government policy towards FDI
FDI Terms
FDI = firm invests directly in facilities toproduce and/or market a product in a foreigncountry
Green-field investment = establishment of a newoperation
 Acquiring or merging with an existing firm
Multinational Enterprise = firm that ownsbusiness operations in more than one country
FDI Terms
Flow of FDI = amount of foreign direct investment undertake over given period
FDI outflows = FDI flow out of a country
FDI inflows = FDI flow into a country
Stock of FDI = total accumulated valueof foreign owned assets at a given time

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