Finance 400- International Finance Foreign markets can be very attractive to investors because indexes in various countries around the world have managed a double or triple digit return on investments. Investors realize these high returns and pursue to invest in foreign markets. There are different ways to invest in foreign markets. There are three main ways to invest in foreign markets‚ Exchange traded funds (ETF) or mutual funds‚ American Depositary Receipts (ADR)‚ and through multinational
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produce and/or market a product in a foreign country 2 3 4 3 4 1 11/1/2013 5 2 11/1/2013 – Investment in the “same” industry – Nokia & Samsung build factories in Bac Ninh‚ Thai Nguyen (Vietnam) – Investment in upstream supplier (backward) or downstream purchaser (forward) – Backward: invest in input industries abroad to serve production – Forward: invest in marketing‚ distribution channel 10 Wholly owned direct investment Joint venture 11 12 3
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QUESTION 3 Read the management Focus on Cemex and then answer the following question: a. Which theoretical explanation‚ or explanations‚ of FDI best explains Cemex’s FDI? b. What value does Cemex bring to a host economy? Can you see any potential drawbacks of Cemex’s inward investment in an economy? c. Cemex has a strong preference for acquisition over greenfield ventures as an entry mode. Why? d. Why do you think Cemex decided to exit Indonesia after failing to gain majority control of Semen
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and other initiatives . From the above‚ it is obvious that economic development is a permanent preoccupation of policy makers in all economies worldwide and more so in developing economies which are still not fully industrialized. Huge capital investment is necessary for economic development. This is lacking in developing countries as they are principally consumer based economies as opposed to the producer based economies that constitute the developed world. The classical economists are of the view
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POLITICAL IDEOLOGY OF FDI‚ BASED ON STARBUCKS CASE STUDY As we have seen from the case study‚ Starbucks prefers not to just franchise and license its format when it tries to expand overseas‚ but as in the case of Japan and China‚ the firm prefers utilising joint-venture arrangements‚ mergers and acquisitions and horizontal FDI to exercise control and ensure standards are at a certain level for all foreign stores (they trained the local workers to emulate the original standards set in the US).
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Which theoretical explanation of FDI best explains Cemex’s FDI? The theory that best explains Cemex’s foreign direct investment (FDI) activity is that of internalization due to limitations of licensing or also known as the market imperfection approach. Cemex wanted to expand horizontally because it wanted to reduce its reliance on its home market and provide some stability in the demand for their product. Also‚ they saw opportunities abroad and it could provide their service‚ which
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2 Definition of economic development 2 Economic development process 3 General notions of Foreign Direct Investment (FDI) 3 FDI in Asia 4 FDI in Thailand 5 How FDI effected to economic development in Thailand? 6 FDI relationship in two important sectors of Thai industry 7 Electronics 8 Automobiles 9 Conclusion 10 Bibliography 11 Tables and Figures 11 Is Foreign Direct Investment (FDI) necessary for economic development? Discuss in relation to two sectors. Introduction
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MANAGEMENT IN FDI PROMOTION TERM PAPER CRM in Foreign Direct Investment Promotion NJIMA‚ Thokozani KDI School of Public Policy & Management 2011 Table of Contents Acronyms………………………………………………………………………………………….3 Abstract……………………………………………………………………………………………4 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Introduction………………………………………………………………………………..5 Strategy and Organization…………………………………………………………………5 Lead Generation…………………………………………………………………………...6 Investment Services……………………………………………………………………...10 The Marketing
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Pages A. Introduction 3 B. Political Indicators 4-11 C. Economic Indicators 12-18 D. Social Indicators 19-23 E. Overall County Total 24 F. Works Cited 25 A. Introcution Spain ’s powerful world empire of the 16th and 17th centuries ultimately yielded command of the seas to England. Subsequent failure to embrace the mercantile and industrial revolutions caused the country to fall behind Britain‚ France‚ and Germany in economic
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Research Paper No. 2007/28 Foreign Direct Investment in Small Island Developing States Robert Read* May 2007 Abstract The role of foreign direct investment (FDI) in small island developing states (SIDS) is an issue that has been neglected until relatively recently. The reasons for this lack of interest are unsurprising‚ given both the low absolute volume of capital flows involved and the general neglect of issues relating directly to SIDS in the mainstream theoretical and empirical economics
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