gb7 - U nderstanding the Vocabula ry Foreign direct...

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Foreign direct investment refers to investing in, controlling, and managing value-adding activities in other countries. Firms that engage in FDI are called multinational enterprises (MNEs). MNEs count for a significant amount of international trade, so it is important to understand what they are and why they are formed. Note that the term “multinational enterprise” only refers to firms that engage in FDI. Firms that engage in other means of doing business abroad, such as exporting and importing, licensing and franchising, outsourcing, and engaging in foreign portfolio investment are not multinational enterprises. Although multinational enterprises have recently experienced significant growth, they have been around for thousands of years. The significant growth in the number of MNEs has been over the past three decades. Between 1970 and 2006, the number of MNEs increased by more than tenfold. These are some clarifications of foreign direct
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gb7 - U nderstanding the Vocabula ry Foreign direct...

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