FOREIGN DIRECT INVESTMENT (FDI)

• A foreign direct investment (FDI) is where an

individual or business from one nation, invests
in another.
 FOREIGN DIRECT INVESTMENT

ADVANTAGES DISADVANTAGES
• Reduced Regional and Global • Foreign Control
Tensions • Loss of Domestic Jobs
• Sharing of Technology, • Risk of Political or Economic
Knowledge, and Culture Change
• Lower Costs and Increased
Efficiency
• Employment and Economic
Boost
 TYPES OF FDI
Horizontal Vertical

Conglomerate
Known Examples of FDI
 FREE TRADE
Free trade occurs when there are no
artificial barriers put in place by
governments.
 ADVANTAGES DISADVANTAGES
• Foreign Direct • Poor working
Investment condition
• Increase Economic • Degradation of
Growth natural resources
• Expertise • Threat to small
• Technology transfer trades
• Reducing the demand
local product
 TYPES OF FREE TRADE
AGREEMENT
• Unilateral Trade Agreement
• Bilateral Trade Agreements
• Multilateral Trade Agreements
 EXAMPLES
• ASEAN Trade in Goods Agreement  
• Philippines – Japan Economic Partnership
Agreement 
• North American Free Trade Agreement
(NAFTA), which covers the U.S., Canada, and
Mexico