国际商务希尔)英文版PPT7.ppt

International Business 7e by Charles W.L. Hill Chapter 7 Foreign Direct Investment Introduction Foreign direct investment (FDI) occurs when a firm invests directly in new facilities to produce and/or market in a foreign country Once a firm undertakes FDI it becomes a multinational enterprise FDI can be: greenfield investments - the establishment of a wholly new operation in a foreign country acquisitions or mergers with existing firms in the foreign country Classroom Performance System The establishment of a wholly new operation in a foreign country is called A) an acquisition B) a merger C) a greenfield investment D) a multinational venture Foreign Direct Investment In The World Economy The flow of FDI refers to the amount of FDI undertaken over a given time period The stock of FDI refers to the total accumulated value of foreign-owned assets at a given time Outflows of FDI are the flows of FDI out of a country Inflows of FDI are the flows of FDI into a country Classroom Performance System The amount of FDI undertaken over a given time period is known as A) the flow of FDI B) the stock of FDI C) FDI outflow D) FDI inflow Trends In FDI There has been a marked increase in both the flow and stock of FDI in the world economy over the last 30 years FDI has grown more rapidly than world trade and world output because: firms still fear the threat of protectionism the general shift toward democratic political institutions and free market economies has encouraged FDI the globalization of the world economy is having a positive impact on the volume of FDI as firms undertake FDI to ensure they have a significant presence in many regions of the world Trends In FDI Figure 7.1: FDI Outflows 1982-2006 ($ billions) The Direction Of FDI Most FDI has historically been directed at the developed nations of the world, with the United States being a favorite target FDI inflows have remained high during the early 2000s for the United States, and also for the Europ