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Chapter 07 - Foreign Direct Investment

Foreign Direct Investment


Chapter 07 - Foreign Direct Investment

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Chapter 07 - Foreign Direct Investment


Opening Case: Starbucks’ Foreign Direct Investment


Foreign Direct Investment in the World Economy

Trends in FDI
The Direction of FDI
The Form of FDI: Acquisitions versus Greenfield Investments
The Shift to Services

Country Focus: Foreign Direct Investment in China

Theories of Foreign Direct Investment

Why Foreign Direct Investment?
The Pattern of Foreign Direct Investment
The Eclectic Paradigm

Political Ideology and Foreign Direct Investment

The Radical View
The Free Market View
Pragmatic Nationalism
Shifting Ideology

Management Focus: DP World and the United States

Benefits and Costs of FDI

Host Country Benefits
Host Country Costs
Home Country Benefits
Home Country Costs
International Trade Theory and FDI

Government Policy Instruments and FDI

Host Country Policies
International Institutions and the Liberalization of FDI

Implications for Managers

The Theory of FDI
Government Policy

Chapter Summary

Critical Thinking and Discussion Questions

Closing Case: Cemex’s Foreign Direct Investment

Chapter 07 - Foreign Direct Investment


Ask students for examples of foreign firms that have invested in the U.S. Jot them down
on the board.

Then, discuss why these companies invested in the U.S. Try to follow the framework
presented in the text, and refer back to the board during the presentation of the material.

Next, explore what the investment means for the U.S.

OPENING CASE: Starbucks’ Foreign Direct Investment

The opening case explores Starbucks’ global expansion. Although concentrating

originally on the franchising method of expansion and licensing of its products, Starbucks
later pursued other options such as joint ventures, wholly owned subsidiaries, and
acquisitions to retain tighter control over operations. Discussion of the case can revolve
around the following questions:

1. Reflect on the various entry strategies used by Starbucks. Why did the company
approach markets using so many entry modes? Was it wise for Starbucks to depart from
its domestic strategy of expanding only through company owned stores?

2. Why is it important for Starbucks to require the same store format in its foreign stores?

3. Where do you think the best opportunities for future growth lie for Starbucks? Why?

Another Perspective: Students may want to explore Starbucks’ web site to see where its
most recent stores have opened, and what form of investment was used. The site is
available at {}. Click on “international” to see a list of
countries where the company operates.

Another Perspective: To expand this case, consider asking students to explore Starbucks’
recent entry into the French market, and its strategic changes in its Chinese operations.
Details on both can be found at
chan=search} and

Chapter 07 - Foreign Direct Investment


This lecture outline follows the Power Point Presentation (PPT) provided along with this
instructor’s manual. The PPT slides include additional notes that can be viewed by
clicking on “view”, then on “notes”. The following provides a brief overview of each
Power Point slide along with teaching tips, and additional perspectives.

Slide 7-3 Introduction

Foreign direct investment (FDI) occurs when a firm invests directly in new facilities to
produce and/or market in a foreign country. Once a firm undertakes FDI it becomes a
multinational enterprise.

Another Perspective: Each year Fortune magazine publishes a list of the 500 largest
global corporations in the world. Fortune calls its list the "Global 500." This list can be
accessed at {}. The article
contains an excellent discussion of the role of global firms in the world economy.

FDI can take the form of a greenfield investment where a wholly new operation is
established in a foreign country, or it can take place via acquisitions or mergers with
existing firms in the foreign country.

Another Perspective: Another web site that provides an excellent discussion of the role of
multinational corporations in the world economy is available at

Slide 7-5 Foreign Direct Investment in the World Economy

The flow of FDI refers to the amount of FDI undertaken over a given time period, while
the stock of FDI refers to the total accumulated value of foreign-owned assets at a given
time. Outflows of FDI are the flows of FDI out of a country, and inflows of FDI are the
flows of FDI into a country.

Slides 7-7-7-8 Trends in FDI

There has been a marked increase in both the flow and stock of FDI in the world
economy over the last 30 years.

Slides 7-9-7-12 The Direction of FDI

While the United States remains a top destination for FDI flows, South, East, and
Southeast Asia, and particularly China, are now seeing an increase of FDI inflows, and
Latin America is also emerging as an important region for FDI.

Chapter 07 - Foreign Direct Investment

Slides 7-14-7-15 The Source of FDI

Since World War II, the U.S. has been the largest source country for FDI. The United
Kingdom, the Netherlands, France, Germany, and Japan are other important source

Slide 7-16 The Form of FDI: Acquisitions Versus Greenfield Investments

Most cross-border investment is in the form of mergers and acquisitions rather than
greenfield investments.

Slide 7-17 The Shift to Services

FDI is shifting away from extractive industries and manufacturing, and towards services.

Slide 7-18 Theories of Foreign Direct Investment

Questions that need to be answered include:
 Why do firms invest rather than use exporting or licensing to enter foreign
 Why do firms from the same industry undertake FDI at the same time?
 How can the pattern of foreign direct investment flows be explained?

Slides 7-19-7-21 Why Foreign Direct Investment?

Why do firms choose FDI instead of :exporting or licensing? Internalization theory
(also known as market imperfections theory) suggests that licensing has three major

Slides 7-22-7-24 The Pattern of Foreign Direct Investment

Knickerbocker looked at the relationship between FDI and rivalry in oligopolistic
industries (industries composed of a limited number of large firms) and suggested that
FDI flows are a reflection of strategic rivalry between firms in the global marketplace.

Vernon argued that firms undertake FDI at particular stages in the life cycle of a product
they have pioneered.

According to the eclectic paradigm, in addition to the various factors discussed earlier, it
is important to consider:
 location-specific advantages - that arise from using resource endowments or
assets that are tied to a particular location and that a firm finds valuable to
combine with its own unique assets
 externalities - knowledge spillovers that occur when companies in the same
industry locate in the same area

Chapter 07 - Foreign Direct Investment

Slide 7-26 Political Ideology and Foreign Direct Investment

Ideology toward FDI ranges from a radical stance that is hostile to all FDI to the non-
interventionist principle of free market economies. Between these two extremes is an
approach that might be called pragmatic nationalism.

Slide 7-27 The Radical View

The radical view argues that the MNE is an instrument of imperialist domination and a
tool for exploiting host countries to the exclusive benefit of their capitalist-imperialist
home countries.

Slide 7-28 The Free Market View

According to the free market view, international production should be distributed among
countries according to the theory of comparative advantage.

Slide 7-29 Pragmatic Nationalism

Pragmatic nationalism suggests that FDI has both benefits, such as inflows of capital,
technology, skills and jobs, and costs, such as repatriation of profits to the home country
and a negative balance of payments effect.

Slide 7-30 Shifting Ideology

Recently, there has been a strong shift toward the free market stance creating:
a surge in FDI worldwide
an increase in the volume of FDI in countries with newly liberalized regimes

Slide 7-31 Benefits and Costs of FDI

Government policy is often shaped by a consideration of the costs and benefits of FDI.

Slides 7-32-7-34 Host Country Benefits

There are four main benefits of inward FDI for host countries: resource transfer effects;
employment effects; balance of payments effects, and effects on competition and growth.

Slides 7-36-7-38 Host Country Costs

There are three mains costs from inward FDI for the host country: the possible adverse
effects of FDI on competition within the host nation; adverse effects on the balance of
payments; and the perceived loss of national sovereignty and autonomy.

Chapter 07 - Foreign Direct Investment

Slide 7-39 Home Country Benefits

The benefits of FDI for the home country include: the effect on the capital account of the
home country’s balance of payments from the inward flow of foreign earnings; the
employment effects that arise from outward FDI; and the gains from learning valuable
skills from foreign markets that can subsequently be transferred back to the home

Slide 7-40 Home Country Costs

The home country’s balance of payments can suffer from the initial capital outflow
required to finance the FDI; if the purpose of the FDI is to serve the home market from a
low cost labor location; and if the FDI is a substitute for direct exports.

Slide 7-42 International Trade Theory and FDI

International trade theory suggests that home country concerns about the negative
economic effects of offshore production (FDI undertaken to serve the home market) may
not be valid.

Slide 7-43 Government Policy Instruments and FDI

Home countries and host countries use various policies to regulate FDI.

Another Perspective: The World Bank has a wonderful site devoted to foreign direct
investment. Students can start exploring the site by going to
{}. Then click on “Doing
Business” to see an option to download summaries on 175 countries, or to generate
instant reports comparing countries on various factors. The site is easy to navigate and
contains a wealth of information.

Slide 7-44 Home Country Policies

Governments can both encourage and restrict FDI

Slide 7-45 Host Country Policies

To encourage inward FDI, governments offer incentives to foreign firms to invest in their
countries, while they restrict inward FDI through ownership restraints and performance

Slide 7-46 International Institutions and the Liberalization of FDI

The World Trade Organization is trying to establish a universal set of rules designed to promote
the liberalization of FDI.

Slide 7-47 Implications for Managers

Managers need to consider what trade theory implies, and the link between government
policy and FDI.

Chapter 07 - Foreign Direct Investment

Slide 7-48 The Theory of FDI

The direction of FDI can be explained through the location-specific advantages argument
associated with John Dunning.

Slide 7-49 Government Policy

A host government’s attitude toward FDI is an important variable in decisions about
where to locate foreign production facilities and where to make a foreign direct


QUESTION 1: In 2004, inward FDI accounted for some 24% of the gross fixed capital
formation in Ireland, but only .6% in Japan. What do you think explains the difference in
FDI inflows into the two countries?

ANSWER 1: One approach to this question is to look at government policy: Ireland is

FDI-friendly and Japan has discouraged inward FDI. Both are trade-dependent
economies with few natural resources, but Ireland appears far less mercantilist in attitude
than does Japan. Ireland has a well-educated, relatively low cost workforce and an
abundant supply of labor, while Japan’s workforce, also well-educated, is expensive.

QUESTION 2: Compare and contrast these explanations of FDI: internalization theory,

Vernon's product life cycle theory, and Knickerbocker's theory of FDI. Which theory do
you think offers the best explanation of the historical pattern of FDI? Why?

ANSWER 2: Knickerbocker's theory suggests that firms imitate other firms in

oligopolistic industries, and will "follow the leader" in undertaking FDI in certain
countries, as sort of strategic defensive moves. This theory does not explain why the first
firm undertakes FDI, and why it chooses to do this rather than to export or license. The
product life cycle theory suggests that firms invest in foreign countries when demand in
that country will support local production or when cost pressures make it necessary to
locate production in low cost locations. While this theory does explain why some FDI
takes place, it also does not explain why FDI is preferred over licensing or exporting.
The market imperfections explanation more directly confronts these issues, and explains
why FDI may be preferable to other alternatives for expanding business activities. It
identifies the importance and difficulty of transferring know-how and describes some of
the impediments to exporting. By explaining better exactly why a firm may undertake
FDI, the market imperfections model is probably the best explanation of the historical
pattern of horizontal FDI.

Chapter 07 - Foreign Direct Investment

QUESTION 3: Read the opening case on Starbucks and then answer the following
a) Initially, Starbucks expanded internationally by licensing its format to foreign
operators. It soon became disenchanted with this strategy. Why?
b) Why do you think Starbucks has now elected to expand internationally primarily
through local joint ventures, to whom it licenses its format, as opposed to using a pure
licensing strategy?
c) What are the advantages of a joint venture entry mode for Starbucks over entering
through wholly-owned subsidiaries? On occasion, Starbucks has chosen a wholly owned
subsidiary to control its foreign expansion (e.g. in Britain and Thailand). Why?
d) Which theory of FDI best explains the international expansion strategy adopted by

a) Starbucks initially approached its foreign expansion using licensing. However, the
company realized that a pure licensing format would not give it the control it desired.
b) Starbucks established a joint venture with a Japanese company, and licensed its
formula to the joint venture as a way to gain more control over its foreign expansion.
Expanding through joint ventures was also attractive because it gave Starbucks access to
knowledge of the local market.
c) The advantages of a joint venture entry mode for Starbucks as compared to wholly-
owned subsidiaries include access to knowledge of the local market and the opportunity
to share the costs and risks of expansion.
d) Internalization theory seems to provide some relevant explanation for Starbucks’
decisions about its foreign strategy

Another Perspective: Students may want to explore Starbucks’ web site to see where its most
recent stores have opened, and what form of investment was used. The site is available at
{}. Click on “international” to see a list of countries where the
company operates.

Another Perspective: To expand this case, consider asking students to explore Starbucks’ recent
entry into the French market, and its strategic changes in its Chinese operations. Details on both
can be found at
chan=search} and

Chapter 07 - Foreign Direct Investment

QUESTION 4: You are the international manager of a US business that has just invented
a revolutionary new personal computer that can perform the same functions as existing
PCs but costs only half as much to manufacture. Several patents protect the unique
design of this computer. Your CEO has asked you to formulate a recommendation for
how to expand into Western Europe. Your options are (a) to export from the US, (b) to
license a European firm to manufacture and market the computer in Europe, and (c) to set
up a wholly owned subsidiary in Europe. Evaluate the pros and cons of each alternative
and suggest a course of action to your CEO.

ANSWER 4: In considering expansion into Western Europe, an international manager

might consider three options: FDI, licensing, and export. With export, assuming there are
no trade barriers, the key considerations would likely be transport costs and localization.
While transport costs may be quite low for a relatively light and high value product like a
computer, localization can present some difficulties. Power requirements, keyboards, and
preferences in models all vary from country to country. It may be difficult to fully
address these localization issues from the US, but not impossible. Since there are many
computer manufacturers and distributors in Europe, there are likely to be a number of
potential licensees. But by signing up licensees, valuable technological information may
have to be disclosed, and the competitive advantage may be lost if the licensees use or
disseminate this proprietary knowledge. FDI (setting up a wholly owned subsidiary) is
clearly the most costly and time consuming approach, but the one that best guarantees
that critical knowledge will not be disseminated and that localization can be done
effectively. FDI will also place you in the market into which you want to sell and allow
you to be near the consumer. Given the fast pace of change in the personal computer
industry, it is difficult to say how long this revolutionary new computer will retain its
competitive advantage. If the firm can protect its advantage for a period of time, FDI
may pay off and help assure that critical knowledge is not lost. If the innovation is not
core and can be easily copied, then licensing would allow the firm to get the quickest
large scale entry into Europe and make as much as it can before losing advantage.

CLOSING CASE: Cemex’s Foreign Direct Investment


The closing case examines Cemex’s rise to global status. Cemex is the world’s third
largest cement company and Mexico’s largest multinational company. In Mexico, Cemex
is known for its efficient manufacturing and excellent customer service. Cemex began its
international expansion in an effort to reduce its reliance on the Mexican market, to
capitalize on demand in developing countries and its knowledge of developing companies
needs, and finally, to increase its value by acquiring inefficient companies and
transferring its skills to those companies. Cemex plans to continue its foreign expansion,
and believes that China and India will be important markets in the future. Discussion of
the case can revolve around the following questions:

Chapter 07 - Foreign Direct Investment

QUESTION 1: Which theoretical explanation, or explanations, of FDI best explains

Cemex’s FDI?

ANSWER 1: Cemex is a cement company. Consequently, exporting is difficult because

of the weight of the product. If Cemex wants to expand into new markets, the company
would either need to license a local company or make an investment in the market
directly. Cemex’s success is due in part to its top notch customer service, and
relationship with distributors. Because these advantages could be difficult to transfer, the
company will probably choose to invest directly. Students should reflect on these factors
as they consider the various theories to explain Cemex’s FDI.

QUESTION 2: What is the value that Cemex brings to the host economy? Can you see
any potential drawbacks of inward investment by Cemex in an economy?

ANSWER 2: Cemex is the third largest cement company in the world, and a powerhouse
in Mexico where it controls 60 percent of the market. Cemex is highly focused on
efficient manufacturing and customer service. Distributors are rewarded for their sales,
as are users. The primary benefit Cemex brings to host countries involves these
competitive advantages. Cemex acquires companies and then transfers technological,
management, and marketing know-how to the new units, improving their performance.
The company has brought several acquired companies back to full production, increasing
employment opportunities in the host country as well.

QUESTION 3: Cemex has a strong preference for acquisitions over greenfield ventures
as an entry mode. Why?

ANSWER 3: Cemex has successfully acquired established cement makers in many

countries. By acquiring companies rather than establishing them from the ground up,
Cemex can avoid some of the delays that could occur in the start-up phase, while at the
same time, capitalize on the benefits of an established market presence.

QUESTION 4: Why do you think Cemex decided to exit Indonesia after failing to gain
majority control of Semen Gresik? Why is majority control so important to Cemex?

ANSWER 4: Much of Cemex’s success appears to be built around its customer service
and attention to distributors. Indeed, it could be argued that what sets Cemex apart from
its competitors, or its competitive advantage, is its superior way of dealing with external
stakeholders. It is significantly easier to duplicate this sort of advantage in a wholly
owned operation than in a joint venture or through licensing arrangements.

QUESTION 5: Why do you think politicians in Indonesia tried to block Cemex’s attempt
to gain majority control over Semen Gresik? Do you think Indonesia’s best interests
were served by limiting Cemex’s FDI in the country?

Chapter 07 - Foreign Direct Investment

ANSWER 5: In 2006, Cemex announced that it would be pulling out of Indonesia.

Cemex entered the Indonesian market in 1998, as part of an IMF sponsored privatization
program. Cemex purchased a 25 percent stake in Semen Gresik, a government owned
cement maker. Cemex’s decision to pull out was a result of a dispute with the Indonesian
government. When Cemex has entered the market, it had been promised a majority
position in Semen Gresik in 2001. However thanks to the efforts of various special
interest groups, permission was never granted. Whether the decision to pull was in the
best interests of the country is difficult to say. Certainly it would seem that Semen Gresik
could learn from Cemex, and utilize its knowledge to improve its own operations.
However, allowing a foreign company to control an industry that is necessary to a
country could be detrimental to the nation.

Another Perspective: Cemex’s web site is available at {}.


There are several iGLOBE video clips that can be integrated with the material presented
in this chapter. In particular, you might consider the following:

Title: Sudan’s Economy Fueled By China

Chinese Investment Sparks Economic Boom in Sudan

Abstract: This video explores the consequences of Chinese investment in Sudan’s oil
industry and the challenges facing the Sudanese economy.

Key Concepts: foreign direct investment, globalization, global economy, economic

development, political economy, trade sanctions

Notes: Change is the name of the game in Sudan these days. Seven years ago, the
Chinese began investing in Sudan’s oil industry, and since then, many Sudanese have
seen their lives improve. Tariq Ibrahim, a Sudanese entrepreneur educated in the United
States, for example, opened a hugely successful copy shop modeled after Kinkos
targeting oil companies and their executives. Profits are so high that Tariq Ibrahim has
been able to pay his employees significantly more than he ever thought possible. Osama
Daoud Abdelatif, now the country’s largest private employer, has built a conglomerate
involving everything from cars to Coca-Cola. According to Osama Daoud Abdelatif,
every aspect of business is booming thanks to the oil investment.

Chapter 07 - Foreign Direct Investment

In Khartoum, the site of an oil refinery, change is everywhere. Chinese know-how and
labor have helped make the economy one of the fastest growing in the world. In
downtown Khartoum hundreds of new villas targeted at the business elite are currently
under construction. However, Sudan’s newfound wealth has also caused the gap between
the rich and poor to widen. Prior to the discovery of oil in Sudan, the country had relied
on agriculture. Now, fed up with antiquated methods and droughts, many farmers are
abandoning their fields. Some have questioned why, given its newfound wealth, the
country has failed to modernize its agricultural sector. One former deputy finance
minister has warned that if the disparities between rich and poor are not addressed soon,
political unrest will increase rise and could cause investors to withdraw.

Complaints about the government are common. Some entrepreneurs complain that
corruption is making it difficult for them to succeed. Others echo the worry that wealth is
not being evenly shared. Osama Daoud Abdelatif has suggested that the government
limit its involvement in the economy to areas such as education and healthcare. For its
part, the government claims that it has changed, and notes that it no longer supports
Osama bin Laden, has settled two civil wars, and intends to be a good global citizen.
Still, not everyone is convinced. There is still concern over the situation in Darfur, and
how people in Sudan are treated. One businessman stated that if things fail to improve,
he will return to England where he was educated.

Discussion Questions:

1. China’s 40 percent stake in Sudan’s oil industry has brought significant changes to
Sudan. Describe the benefits of the investments to the Sudanese. What, if any, are the
disadvantages of the investment? Consider the new challenges the investment brings to

2. China has made a significant investment in Sudan. What does China gain from making
this investment?

3. Sudan’s newfound wealth has raised concerns that the gap between rich and poor has
widened. Discuss this concern from the perspective of both the rich and the poor. Does
the government bear any responsibility to ensure the wealth is more evenly distributed?
Why or why not?

4. Some Sudanese businessmen have complained that American restrictions on imports

have made it difficult for them to conduct their business. In your opinion, should the
United States lift the sanctions? Are the sanctions achieving the desired goals?

Chapter 07 - Foreign Direct Investment


There are also several longer video clips that can be integrated with the material
presented in this chapter. In particular, you might consider the following:

Title 16: Starbucks


Starbucks opened its first store in 1971. Today, the company, which has grown to over
6,000 stores located in 30 different countries, consumes 1.5 percent of the world’s coffee
production. A key issue challenging Starbucks is ensuring a consistent supply of
premium grade coffee beans for its roasters, a problem that is complicated by volatile
prices for coffee on the world market. In the last 15 years supply of coffee has exceeded
demand driving the price of coffee to 50 cents a pound. This price is less than what it
costs the farmer to produce that same pound of coffee. As a result many small farmers
have gone out of business or turned to growing other sustainable subsistence crops.

In an effort to promote the sustainability and stability of the industry, Starbucks has
formed long- term relationships with farmers agreeing to pay them a fair price for their
coffee to ensure the sustainability of this industry. Starbucks has also established a
program to offer bridge loans to farmers. These loans, which are paid back as soon as
coffee is picked, provide assistance to farmers that are having difficulty accessing credit
because of the unpredictability of their business.

Discussion Questions

1. What crisis did coffee growers face in the last 15 years? How has Starbucks’ program
to provide bridge loans helped coffee growers?

2. Starbucks consumes 1.5 percent of the world’s total coffee production. Why is it so
important to the company to maintain a consistent supply of premium coffee? Why did
Starbucks believe in building relationships with coffee growers?

3. How does lack of property rights in many tropical countries affect the coffee farmer?

4. Coffee prices have fallen dramatically over the last 15 years, so much so that prices are
currently below the cost of production. How do Starbucks’ agreements with its suppliers
protect them from this problem?

Chapter 07 - Foreign Direct Investment

globalEDGE™ Exercise Questions

Use the globalEDGE™ site {} to complete the following


Exercise 1
The World Investment Report published annually by UNCTAD provides quick electronic
access to comprehensive statistics on foreign direct investment (FDI) and the operations
of transnational corporations. Gather a list of the top transnational corporations in terms
of foreign direct investment. Also, identify each company’s home country (i.e.,
headquarters country). Provide a commentary about the characteristics of countries that
have the greatest number of transnational firms. Are there any common traits you notice
concerning countries with many transnational firms?

Exercise 2
Your company is considering opening a new factory in Latin America, and management
is in the process of evaluating the specific country locations for this direct investment.
The pool of candidate countries has been narrowed to Argentina, Mexico, and Brazil.
Prepare a short report from a well-known organization’s publication of Country Fact
Sheets to compare the foreign direct investment environment and regulations of these
three countries.

Answers to Exercises

Exercise 1
The data source can be accessed by searching the term “World Investment Report” at
{}. The link to the World Investment Report is
found under the globalEDGE category “Research: Statistical Data Sources”. On this
website, the list of members top transnational corporations can be found under the
“Largest TNCs” link, located on the left of the page. Be sure to check the “Resource
Desk only” checkbox of the search function on the globalEDGE website.

Search Phrase: “World Investment Report”

Resource Name: UNCTAD: Largest Transnational Corporations
Website: {}
globalEDGE™ Category: “News & Periodicals: Publications”

Chapter 07 - Foreign Direct Investment

Exercise 2
The foreign direct investment statistics are provided by a variety of sources. One of the
most comprehensive sources is the UNCTAD’s Country Fact Sheets and can be accessed
by searching the term “Country Fact Sheets” at
{}. The link to the Country Fact Sheets is
found under the globalEDGE category “Research: Statistical Data Sources”. On this
website, country specific information can be found by following the “Country Fact
Sheets” link, located on the right side of the page. Be sure to check the “Resource Desk
only” checkbox of the search function on the globalEDGE website.

Search Phrase: “Country Fact Sheets”

Resource Name: UNCTAD Country Fact Sheets
Website: {}
globalEDGE™ Category: “Research: Statistical Data Sources”

Alternatively, a lot of the same statistics, as well as detailed write-ups of the FDI
environment can also be reached through the Country Commercial Guides. See Chapter 5
– Exercise 1 for instructions on how to reach the Country Commercial Guides through