8 - Chapter 7 - Foreign Direct Investment Chapter Seven...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7 -- Foreign Direct Investment Chapter Seven deals with the lifeblood of International Business, Foreign Direct Investment or "FDI" as we shall refer to it. As firms internationalize they move from doing everything domestically including having all investment right at home in their domestic markets. As firms have excess capacity or wish to find new places to sell their products or services or for any number of reasons decide to get involved internationally they usually start by exporting. This involves keeping all investment firmly in place in the domestic home location but pumping the outcome of their VACs (Value Added Chains) out . .. selling their products and services in foreign or international markets. If they do this because their product lends itself to being global, if consumers use it the same way no matter where they are . .. and if the home and host governments permit them to export into their markets . .. and if the people, the local host cultures will accept these
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/07/2011 for the course IBUS 330 taught by Professor Nicholson during the Fall '07 term at S.F. State.

Page1 / 2

8 - Chapter 7 - Foreign Direct Investment Chapter Seven...

This preview shows document pages 1 - 2. Sign up to view the full document.

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