Foreign Direct Investment (FDI) by zarina kassim https://padlet.com/zarina_phdukm/5bzn4bn3odtx EIX1003 Principles of Economics > Macroeconomics > Foreign Direct Investment | 6 January 2020 | 9.00am-11.00am en-us 2020-01-02 13:02:56 UTC 2024-12-16 18:38:19 UTC hello@padlet.com What Is a Foreign Direct Investment (FDI)? zarina_phdukm https://padlet.com/zarina_phdukm/5bzn4bn3odtx/wish/427311042 A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country.

Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign business assets in a foreign company.

"To listen well is as powerful a means of communication and influence as to talk well"
-John Marshall]]> 2020-01-02 14:12:28 UTC https://padlet.com/zarina_phdukm/5bzn4bn3odtx/wish/427311042 How a Foreign Direct Investment Works? zarina_phdukm https://padlet.com/zarina_phdukm/5bzn4bn3odtx/wish/427311478 Foreign direct investments are commonly made in open economies that offer a skilled workforce and above-average growth prospects for the investor, as opposed to tightly regulated economies. 

Foreign direct investment frequently involves more than just a capital investment. It may include provisions of management or technology as well. ]]> 2020-01-02 14:14:01 UTC https://padlet.com/zarina_phdukm/5bzn4bn3odtx/wish/427311478 Advantages and Disadvantages of FDI for Developing Countries zarina_phdukm https://padlet.com/zarina_phdukm/5bzn4bn3odtx/wish/427315712 *Research at home]]> 2020-01-02 14:34:29 UTC https://padlet.com/zarina_phdukm/5bzn4bn3odtx/wish/427315712 Learning Outcomes zarina_phdukm https://padlet.com/zarina_phdukm/5bzn4bn3odtx/wish/427659953 At the end of this topic, students are able to:

1) Describe the meaning of Foreign Direct Investment (FDI);
2) Discuss how FDI works and provide examples;
3) Explain the different between horizontal, vertical and conglomerate FDI; and
4) Identify and give examples of advantages and disadvantages of FDI for developing countries.]]> 2020-01-05 00:57:04 UTC https://padlet.com/zarina_phdukm/5bzn4bn3odtx/wish/427659953 Types of Foreign Direct Investment zarina_phdukm https://padlet.com/zarina_phdukm/5bzn4bn3odtx/wish/427662394 Foreign direct investments are commonly categorized as being horizontal, vertical or conglomerate.

A horizontal direct investment refers to the investor establishing the same type of business operation in a foreign country as it operates in its home country, for example, a cell phone provider based in the United States opening stores in China. 

A vertical investment is one in which different but related business activities from the investor's main business are established or acquired in a foreign country, such as when a manufacturing company acquires an interest in a foreign company that supplies parts or raw materials required for the manufacturing company to make its products.

A conglomerate type of foreign direct investment is one where a company or individual makes a foreign investment in a business that is unrelated to its existing business in its home country. Since this type of investment involves entering an industry in which the investor has no previous experience, it often takes the form of a joint venture with a foreign company already operating in the industry.

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