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FDI

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FDI
FDI

 Have an understanding of the patterns and distribution of FDI flows in the global economy
 Have an understanding of the major explanations of determinants of FDI and the reasons for the resurgence of FDI in the global economy after 1985
 have an awareness of the role of multinationals in improving competitiveness of domestic firms and other impacts of FDI
 Have an awareness of role of FDI promotional policies

A Foreign direct investment (FDI) is a controlling ownership in a business enterprise in one country by an entity based in another country. Foreign direct investment (FDI) is a key element in international economic integration.
It creates direct, stable and long-lasting links between economies. It encourages the transfer of technology and know-how between countries, and allows the host economy to promote its products more widely in international markets. FDI is also an additional source of funding for investment and, under the right policy environment, it can be an important vehicle for development.

Decline in Manufacturing in TRIAD and its shift to Non-Triad
M&A emerge as major form of FDI. M&A Activity –rising again after financial crisis

Have an understanding of the major explanations of determinants of FDI and the reasons for the resurgence of FDI in the global economy after 1985 theories of determinants FDI Dunning's OLI theory are the most important determinants of attraction to FDI.
(1) Make the best of firm-specific (ownership) competitive advantage. It represent all the advantages of owning a producing unit in a host country versus selling the goods and services in the market or selling the license to some economic unit in the host country
management finance marketing technology (patents)
brand name ( Coca Cola – MacD – CK- Nike)
vertical integration - control over resources and markets
(2) Make the best of location-specific advantages (for being there) that represent specifics regarding inputs that exist in a

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