Term Papers on Global Business from Term Papers Lab.
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a. What It Is And What Can Be Gained From It?
FDI: Investments in businesses/operations in a foreign country.
- A firm makes a direct investment outside it's region
- This firm and others become MNCs or MNEs (Multinational Enterprise "more than one country")
i. Why FDI? (pgs. 245-246, examples include in text)
FDI is the alternative available to firms other than exporting and licensing. Although FDI is risky and expensive, the limitations of exporting and licensing as means for capitalizing on foreign market opportunities can be less effective. A firm will favor FDI over exporting as an entry strategy when transportation costs or trade barriers make exporting unattractive. FDI will be favored over licensing or franchising when it wishes to maintain control over its technological know-how, or over its operations and business strategy, or when the firm's capabilities are simply not amenable to licensing.
Exporting:
Limitations: Often constrained by transportation......
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Title: Global Business
Approximate Word Count: 522
Approximate Pages: 3 (250 words per double-spaced page)
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