Foreign direct investment Free Essay, Term Paper and Book Report
Presentation Topic: What is foreign direct investment? Evaluate the different forms direct investment might take, outlining the benefits and risks of each type.
To carry out multinational enterprises (MNEs) worldwide operations, they rely on foreign direct investment (FDI), it is investment, acquisition or construction made by a foreign individual or organization in productive capacity of an overseas company or facility, simply speaking, when a company sets up operations outside its home country, it is a kind of foreign investment.
There are different forms that FDI might take, the basic can be classified into vertical, horizontal and conglomerate integration within the host and source countries. Vertical integration often occurs when the parent MNE decides to establish foreign subsidiaries to produce intermediate goods or inputs that go into the production of the finished goods for the cost of raw material or labor may be cheaper than the home country. Those organizations usually start by exporting, there would be minimal capital requirements and start-up costs, low risk, and ......
Word Count: 1061
Page Count: 4.2 (250 words a page / double spaced)
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