商务英语综合教程下册课件房玉靖主编 ISBN9787810789707Unit 1 Changes in the Motives and Developments.ppt

Unit One Introduction A number of important, traditionally closed service sectors were exposed during the 1980s to foreign competition in increasing numbers of countries and opened up to foreign direct investment. This trend is likely to continue…… Text 1 A number of important, traditionally closed service sectors, such as financial services and transport, were exposed during the 1980s to foreign competition in increasing numbers of countries and opened up to foreign direct investment. This trend is likely to continue in the 1990s as a result of privatization in transport, telecommunications and public utilities. 2 The shifts in the countries and sectors in which foreign direct investments are made are connected with the changes in the motives behind foreign direct investments. 9 In highly developed markets, particularly those characterized by severe competition, building up new production capacity and distribution channels, and establishing a brand name, forces new entrants to invest heavily in plants of sufficient size, as well as in their marketing efforts, in such markets, it often proves more effective to take over an existing company which already has production capacity, distribution channels and an established brand name. 10 Companies lacking the resources to take over a foreign company but willing to cooperate with them so as to benefit from their technology or market knowledge, brand name and/or distribution channels on the foreign market – are increasingly opting for strategic alliances. Strategic alliances may also be accompanied by foreign investment, for example because the companies hold minority interests in each other’s equity. There are various examples in such areas as aviation, the motor vehicle sector and electronics. Under the impact of governmental regulations in countries which more recently have opened up to foreign direct investment, and in conjunction with the importance of havi