This technical note briefly introduces the reader to various Foreign Direct Investment related concepts and firm-level considerations. As discussed throughout the paper, a decision to participate in FDI can occur for various reasons. Some multinationals are motivated to invest abroad in order to sell to new markets. Others might view FDI as a way to access global natural resources. Most nations welcome investments from foreigners and see the funds as an opportunity to increase economic growth. Yet, other nations prefer to limit the influence of foreign firms and push domestic politicians to implement protectionist policies. One thing is clear, whether one is a strong supporter of FDI or a staunch critic, it is essential to have an understanding of this important business topic.
Foreign Direct Investment
by: Robert E. Kennedy
Publication Date: December 22, 2009
Length: 10 pages
Product ID#: 1-428-827
Core Disciplines: International Business
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After reading and discussing the material, students should:
- describe appropriate business terms and principles approriate to this case,
- apply critical concepts from earlier learning to define a solution to the case,
- successfully articulate data and information in support of the solution proposed,
- critically analyze and discuss other responses and solutions to the case,
- draw lessons from the case analysis,
- generalize the learnings of this case to other business challenges and decisions in organizations other than the one analyzed in this case study,
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