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International Business by Sumati Varma

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9

Foreign Direct Investment: Theory and Application

LEARNING OBJECTIVES

After going through this chapter, you should be able to:

  • Identify the different forms of foreign direct investment (FDI) in the global economy

  • Examine the economic rationale underlying FDI behaviour

  • Understand why firms often prefer direct investment as a strategy for entering a foreign market over alternatives such as exporting and licensing

  • Appreciate how political ideology influences government policy towards FDI

  • Determine the costs and benefits of FDI for home and host countries

  • Understand FDI flows in the global and Indian context

Latin America's Conquistadors

There is a new breed of transnational corporations (TNCs) from Latin America—conquistadors—that have ...

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