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Unformatted text preview: LEARNING OB'ECTIVES After studying this chapEr, you should be abh to: I unders€rhd the vcbuhry asgiabd wit'| ioreign diEt inv6tment (FDI) 2 @ the [email protected]+ and instituEon-ba-d views io expbin why FDI bk6 [email protected] 3, gqCeFbnd how FDI Eults in owreEhip, lction, and internallahon (OU) advantagE 4. ids6fy different [email protected] viere on FDI ba*d on an undecbndino of FDI' den€fits and Gts to hd ahd hofie counEi6 5. p.rtkip.te in two l€ding deb.tes on FDI 6 dGw implicdons for action THE FDI VOCABUI.ARY foreign direct investrnent (FDI) - Investments h activitles that contrd and rnanage value creatlon h!,q!B:[email protected]!:s multanational enterprise (ttlNE) - A ffrm that engages ln forelgn dlrect lnvestrnent THE FDI VOCABUI.ARY equlty ownership and ownershlp rlghts and xlgnncant orvnership rlghts provld€ rilrch needed managernent control rlghts >FPI reDresents essentlally hslqnlflcant ownershlp rigms and no inanagernent contml rights y, firtns need to deploy and caDabilitl€s to overEorne thelr FDI provld€s one of the b€st nEys fl rm-spec]fi c resources and THE FDI VOCABUI.ARY l;n .. managerned of forebn assets man.g€m€nt control rights - rne dghts to appolnt key managers and establbh @ntrol m€chanbns THE FDI VOCABULARY horizontal FDf - a woe of FDt tn which a llrm dudkates lts horne counfry-based actlvltles at the sarne Yalue chaln stag€ in a host country vertical FDI - n type of FDr ln lvhlch a llrm rnoves upstleam or dowrEtream ln dlfferent value chaln stages ln a hct cqrntry *EffiEfif*fl...
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