CHAPTER 9

Foreign Direct Investment

LEARNING OBJECTIVES

After reading this chapter, you should be able to:

  • Identify the different forms of foreign direct investment (FDI) in the global economy
  • Examine the economic rationale underlying FDI behaviour
  • Understand why firms often prefer direct investment as a strategy for entering a foreign market over alternatives such as exporting and licensing
  • Determine the costs and benefits of FDI for home and host countries
  • Understand FDI flows in the global and Indian context

TECNO CAPTURES THE AFRICAN MARKET

Transsion is a Chinese smartphone manufacturer which has beaten Apple in the African market. It used the well-known strategy of ‘Think Global Act Local’, to beat its rivals Samsung, Apple, ...

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