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BUS350 - Ch.7 - International Business PaulMcAfee...

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1 of 51 International Business Paul McAfee – Keuka College
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2 of 51 Chapter 7 Foreign Direct Investment
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3 of 51 Introduction Question : What is foreign direct investment? Foreign direct investment (FDI) occurs when a firm invests directly in new facilities to produce and/or market in a foreign country Once a firm undertakes FDI it becomes a multinational enterprise (MNE) There are two forms of FDI A greenfield investment ( the establishment of a wholly new operation in a foreign country ) Acquisition or merging with an existing firm in the foreign country
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