December 2015
Intermediate to advanced
313 pages
16h 2m
English
Content preview from International Business, 2nd Edition by Pearson
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Foreign Direct Investment 167
INTRODUCTION
This chapter examines the economic rationale behind foreign direct investment (FDI). It also explores
dierent theories, which explain the growth of FDI as a means of growing international presence and
the dierent forms it takes, and examines the factors driving a firm to choose FDI and the benefits FDI
has for both home and host countries.
FDI as a mode of foreign entry occurs when a
firm invests directly in production or other facili-
ties in a foreign country over which it has eective
control.
FDI: A CLASSIFICATION
FDI can be classified in several dierent ways. We
classify it on the basis of whether ...
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