Chap006 - Chapter 6 Foreign Direct Investment Opening...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter Foreign Direct Investment 6
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Opening case-Starbucks Starbucks’ strategy Coffee house setting, blended coffees Superior customer service Attention to hiring, training, and compensation Motivation of employees Used nation-specific strategies Britain Japan Thailand Korea
Background image of page 2
What is foreign direct investment Company acquiring or merging with a firm in a different country A firm creating a ‘Greenfield’ operation in a different country A firm creating a subsidiary in a different country As a result The firm has significant control of its foreign operation Firm can affect managerial decisions of the foreign operation
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
FDI - Flow versus stock FDI occurs when a firm invests directly in facilities to produce and/or market a product in a foreign country Flow: Amount of FDI over a period of time (one year) Stock: Total accumulated value of foreign owned assets at a given point in time FDI is not the investment by individuals, firms or public bodies in foreign financial instruments
Background image of page 4
Why is FDI important ? Firms want a presence in foreign markets
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/08/2011 for the course MGNT 3650 taught by Professor Grimes during the Spring '11 term at Georgia Southwestern.

Page1 / 18

Chap006 - Chapter 6 Foreign Direct Investment Opening...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online