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 169
integration is the establishment of an assembly plant or a sales branch overseas to be able to
sell the firm’s domestic output abroad. For example, when Volkswagen entered the US market,
it acquired a large number of dealers to distribute its product rather than distribute its product
through independent US dealers.
3. Conglomerate FDI refers to investment
made by a TNC to manufacture products
which are not being manufactured by the
parent company at home. For example,
TNCs based in Hong Kong often set up
foreign subsidiaries or acquire local firms in mainland China to manufacture goods that are
unrelated to the ...
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