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HOMEWORK OF IBM
FDI MOTIVES
ASSOC.PROF. Mahmut Arslan
PREPARED BY:
FEYZA KAYA 20312196
ZÜLFÜYE YILDIZ 20212354
CONTENTS
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CONTENTS ii
FDI MOTIVES 3 FOREIGN DIRECT INVESTMENT: 3 Types of FDI 4 Advantages of FDI 4 Motivations for FDI 6 Market-Expansion: Investments versus Trade 6 Resource-Acquisition Investment 8 Diversification-Oriented Investments 9 Political Motives 9
SOME EXAMPLES FOR FDI MOTIVES 9 Case: Bridgestone Tire Company 9 Foreign direct investment: a case study on Argentina 10 Case of Ireland 11 Case of Singopare: Foreign Direct Investment 13 Case of Mexico: Foreign Direct Investment 15 FDI MOTIVES IN TURKEY 18 THE STATISTICAL ANALYSIS BY YASED AND TUSIAD 18
CONCLUSİON 20
REFERENCES 22
FDI MOTIVES
First, to understand better FDI motives, we can look FDI.
FOREIGN DIRECT INVESTMENT:
Foreign direct investment (FDI) plays an extraordinary and growing role in global business. It can provide a firm with new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing. For a host country or the foreign firm which receives the investment, it can provide a source of new technologies, capital, processes, products, organizational technologies and management skills, and as such can provide a strong impetus to economic development. Foreign direct investment, in its classic definition, is defined as a company from one country making a physical investment into building a factory in another country. The direct investment in buildings, machinery and equipment is in contrast with making a portfolio investment, which is considered an indirect investment. In recent years, given rapid growth and change in global investment patterns, the definition has been broadened to include the acquisition of a lasting management interest in a company or enterprise outside the investing firm’s home