Types of Foreign Direct Investment

  1. 14.4 Identify the types of foreign direct investment.

One way to illustrate the pattern of FDI worldwide is to examine FDI stock. FDI stock refers to the total value of assets that MNEs own in foreign countries. The map in Exhibit 14.5 portrays the volume of FDI stock per capita by country. High levels of FDI stock suggest that a country is a popular investment destination and that MNE managers are confident about the country’s economic health and prospects. We can classify FDI activities by form (greenfield versus mergers and acquisitions), nature of ownership (wholly owned versus joint venture), and level of integration (horizontal versus vertical).

Exhibit 14.5

Stock of Foreign Direct Investment per Capita ...

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