Foreign Direct Investment.doc
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Foreign Direct Investment.doc

ForeignDirectInvestment.doc

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GlobalBusinessTodaySixthEditionChapter7Chapter07-ForeignDirectInvestment7-PAGE\*MERGEFORMAT23ForeignDirectInvestmentChapterOutlineOpeningCase:LakshmiMittalandtheGrowthofMittalSteelINTRODUCTIONFOREIGNDIRECTINVESTMENTINTHEWORLDECONOMYTrendsinFDITheDirectionofFDICountryFocus:ForeignDirectInvestmentinChinaTheSourceofFDITheFormofFDI:AcquisitionsversusGreenfieldInvestmentsTheShifttoServicesTHEORIESOFFOREIGNDIRECTINVESTMENTWhyForeignDirectInvestmentManagementFocus:ForeignDirectInvestmentbyCemexThePatternofForeignDirectInvestmentTheEclecticParadigmPOLITICALIDEOLOGYANDFOREIGNDIRECTINVESTMENTTheRadicalViewTheFreeMarketViewPragmaticNationalismShiftingIdeologyManagementFocus:DPWorldandtheUnitedStatesBENEFITSANDCOSTSOFFDIHostCountryBenefitsHostCountryCostsHomeCountryBenefitsHomeCountryCostsInternationalTradeTheoryandFDIGOVERNMENTPOLICYINSTRUMENTSANDFDIHomeCountryPoliciesHostCountryPoliciesInternationalInstitutionsandtheLiberalizationofFDIFOCUSONMANAGERIALIMPLICATIONSTheTheoryofFDIGovernmentPolicySUMMARYCRITICALTHINKINGANDDISCUSSIONQUESTIONSCLOSINGCASE:Starbuck’sForeignDirectInvestmentLearningObjectives1.BefamiliarwithcurrenttrendsregardingFDIintheworldeconomy.2.Understandthedifferenttheoriesofforeigndirectinvestment.3.Appreciatehowpoliticalideologyshapesagovernment’sattitudestowardsFDI.4.UnderstandthebenefitsandcostsofFDItohomeandhostcountries.5.BeabletodiscusstherangeofpolicyinstrumentsthatgovernmentsusetoinfluenceFDI.6.ArticulatetheimplicationsformanagementpracticeofthetheoryandgovernmentpoliciesassociatedwithFDI.ChapterSummaryThischapterfocusesonthetopicofforeigndirectinvestment(FDI).FDIoccurswhenafirminvestsdirectlyinnewfacilitiestoproduceand/ormarketaproductinaforeigncountry.Attheoutset,thechapterdiscussesthegrowthinFDI,particularlybymedium-sizedandsmallfirms.ThetheoreticalunderpinningsofFDIarediscussed,whichdescribeunderwhatcircumstancesitisadvantageousforafirmtoinvestinproductionfacilitiesin