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International Business: The New Realities, 5th Edition
book

International Business: The New Realities, 5th Edition

by S. Tamer Cavusgil, Gary Knight, John R. Riesenberger
January 2019
Intermediate to advanced content levelIntermediate to advanced
576 pages
33h 19m
English
Pearson
Content preview from International Business: The New Realities, 5th Edition

Types of Foreign Direct Investment

  1. 14.4 Identify the types of foreign direct investment.

One way to illustrate the pattern of FDI worldwide is to examine FDI stock. FDI stock refers to the total value of assets that MNEs own in foreign countries. The map in Exhibit 14.5 portrays the volume of FDI stock per capita by country. High levels of FDI stock suggest that a country is a popular investment destination and that MNE managers are confident about the country’s economic health and prospects. We can classify FDI activities by form (greenfield versus mergers and acquisitions), nature of ownership (wholly owned versus joint venture), and level of integration (horizontal versus vertical).

Exhibit 14.5

Stock of Foreign Direct Investment per Capita ...

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Publisher Resources

ISBN: 9780136763017