International Business

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 ...