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

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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 products without customization ... and finally if the product has the weight to value ratio
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