International Business Lecture No,31 By Dr.Shahzad Ansar

Slides:



Advertisements
Similar presentations
Global Business Today 7e
Advertisements

FOREIGN DIRECT INVESTMENT AND ITS POLITICAL ECONOMY
McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved Chapter 15: Multinationals and Migration: International Factor Movements.
Fourth Edition International Business. CHAPTER 6 Foreign Direct Investment.
Fourth Edition International Business. CHAPTER 6 Foreign Direct Investment.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Foreign Direct Investment
International Business 8e
International Business 7e
Chapter 15 Multinationals and Migration
International Business 9e
CHAPTER 7 Foreign Direct Investment. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved Learning Objectives What are.
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Global Business Today 7e by Charles W.L. Hill.
Chapter 7 Foreign Direct Investment McGraw-Hill/Irwin Global Business Today, 4/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. Foreign.
Foreign Direct Investment
Foreign Direct Investment
Chapter Foreign Direct Investment 6. McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 6-2 Opening.
Foreign Direct Investment
Foreign Direct Investment Lecture 8. Introduction Foreign direct investment (FDI) occurs when a firm invests directly in new facilities to produce and/or.
Foreign Direct Investment
Gray, Salter & Radebaugh Chapter 1 Global Accounting and Control: A Managerial Emphasis   Sidney J. Gray, University of New South Wales   Stephen B.
Foreign Direct Investment
Foreign Exchange and Currencies Economics 71a Spring 2007 Mayo, Chapter 6 (skim) Lecture notes 2.6.
FORIGN DIRECT INVESTMENT
INTERNATIONAL BUSINESS Professor H. Michael Boyd, Ph.D.
© The McGraw Hill Companies, Inc., 2000 Foreign Direct Investment Chapter 6.
International Business 9e By Charles W.L. Hill McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 6 Learning Objectives After studying this chapter, you should be able to: 1.understand the vocabulary associated with foreign direct investment.
INTERNATIONAL BUSINESS
Learning Objectives Identify the forces underpinning the rising tide of foreign direct investment in the world economy Understand why firms often prefer.
Chapter 02 International Trade and Investment McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
ECON3315 International Economic Issues Instructor: Patrick M. Crowley Issue 20: FDI.
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
chapter Foreign Direct Investment McGraw-Hill/Irwin Global Business Today, 5e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 7.
Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia–Pacific Perspective 2e by Gionea. Slides prepared.
Copyright ©2003 McGraw-Hill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea US EU Australia.
International Business 9e By Charles W.L. Hill McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
Chapter Seven Foreign Direct Investment McGraw-Hill/Irwin International Business, 6/e © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
Griffiths and Wall: Economics for Business and Management 3rd edition© Pearson Education Limited 2011 Chapter 3 The multinational corporation Slide 3.1.
McGraw-Hill/Irwin © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
Foreign Direct Investment 7 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall.
Foreign Direct Investment Chapter Objectives Describe worldwide patterns of foreign direct investment (FDI) and reasons for those patterns Describe.
Foreign Direct Investment Tuesday, October 18, 2011.
McGraw-Hill/Irwin Copyright  2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 15: Multinationals and Migration: International Factor.
Chapter 8 Strategy in the Global Environment
Foreign Direct Investment
Foreign Direct Investment
International Business 9e
Chapter 1 Trade and investment in a global economy
International Business 10e
Foreign Direct Investment
International Business 7e
International Business 9e
FORIGN DIRECT INVESTMENT
Foreign Affiliates Statistics (FATS)-Compilation
Foreign Direct Investment
Presentation on Foreign Direct Investment
International Business 10e
Foreign Direct Investment
Chapter 7 Foreign Direct Investment
International Economics
Topic 2 : Cross Border Interdependence : Growth of Strategic ship Technology Partnership.
International Business 9e
International Business 11e
Foreign Direct Investment
Chapter 8 Strategy in the global Environment
International Business 9e
International Business 12e
International Business 9e By Charles W.L. Hill McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Presentation transcript:

International Business Lecture No,31 By Dr.Shahzad Ansar

Foreign Direct Investment

Chapter Focus This chapter seeks to identify the economic rationale that underlies Foreign Direct Investment. For example, why do some firms prefer FDI to exporting or licensing. Is the need for control, part of the answer?

Foreign Direct Investment FDI occurs when a firm invests directly in facilities to produce and/or market a product in a foreign country. Once a firm undertakes FDI, it becomes a multinational enterprise (multinational = more than one country). FDI takes two forms:

Foreign Direct Investment Green-field investment: establishing a wholly new operation in a foreign country. Acquiring or merging with an existing firm in the foreign country. Investing in foreign financial instruments (Portfolio Investment) IS NOT FDI.

Flow and Stock of FDI Flow: Stock: The amount of FDI undertaken over a given period of time (usually one year). Stock: Total accumulate value of foreign-owned assets at a given time.

FDI Outflows 1982-2000

FDI Flows by Region Index

Reasons for FDI Growth FDI circumvents potential future trade barriers. Dramatic political and economic changes occurring in developing countries.

Increase in the Number of Bilateral Trade Treaties

FDI into Developed and Developing Nations: 1990-2000 $Billion Figure 6.3

Inward FDI Flows as a Percentage of Gross Fixed Capital Formation, 1998 L. Amer. W. Europe Dev. Nations

FDI Outflows by Selected Countries, 1994-1999 Figure 6.5