Peng_Chapter 6

Peng_Chapter 6 - THE FDI VOCABULARY Foreign direct...

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Unformatted text preview: THE FDI VOCABULARY Foreign direct investment (FDI) - Investments in activities that control and manage value creation in other countries Foreign portfolio investment (FPI) - do not entail the active management of foreign assets THE FDI VOCABULARY Horizontal FDI - A type of FDI in which a firm duplicates its home country-based activities at the same value chain stage in a host country Vertical FDI - A type of FDI in which a firm moves upstream or downstream in different value chain stages in a host country THE FDI VOCABULARY FDI flow - The amount of FDI moving in a given period (usually a year) in a certain direction FDI inflow - Refers to inbound FDI moving into a country in a year FDI outflow - Refers to outbound FDI moving out of a country in a year FDI stock - The total accumulation of inbound FDI in a country or outbound FDI from a country OLI Advantages...
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Peng_Chapter 6 - THE FDI VOCABULARY Foreign direct...

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