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Unformatted text preview: 1. Foreign Capital I nflows a. Be able to define and discuss: Foreign Direct Investment, Foreign Portfolio Investment, and Remittances of earnings by international migrants. FDI: One firm, entity making a physical investment in another country. FPI: Foreign investors buying stock and bonds in another country (fund managers, individuals, banks, corporations). Remittances of earnings by international migrants: Transfer of money by a foreign worker to his/her home country b. What are the various types of FD I (horizontal, vertical, export platform)? Horizontal: replica of the original operation located abroad in order to serve that market- helpful when tariffs are high, possible when skill sets needed can be found in foreign country, transport costs are high to make but expensive to ship, potential loss of trade secrets or tech, close proximity to market is advantageous, and better market penetration....
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This note was uploaded on 09/30/2011 for the course ECN 115B 115B taught by Professor Wilson during the Spring '09 term at UC Davis.
- Spring '09