10256679
Description
Mind Map by Jodie Arnold, updated more than 1 year ago
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Created by Jodie Arnold
over 6 years ago
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Chapter 8 - FDI
- High transportation or tariffs may be barriers to exports
- Two forms of FDI
- buying a firm in a foreign country
- establishing operations there
- buying a firm in a foreign country
- Prefer FDI over licensing when
- Protect knowledge know how
- tight control over manufacturing etc
- not suitable to licensing
- Protect knowledge know how
- Knickerbocker theory
- Dunning - FDI to exploit resource endowments location specific
- Political ideology
- Radical stance
- Noninterventionist
- Pragmatic nationalism
- Radical stance
- Benefits & Costs to Host Countries
- + employment
- + BOP effect
- + resource transfer effects
- - national sovereignty
- - competition
- - BOP
- + employment
- Benefits & costs to source countries
- Govt encourage FDI through incentives
- Govt discourage FDI through ownership restrictions and performance requirements
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