ThiN ga nH an g co m ThiNganHang com Definition Foreign Direct Investment The establishment of a plant or distribution network abroad Investors can acquire part or all of the equity of an existing f[.]
an g co m nH Th iN ga ThiNganHang.com an g co m Definition Foreign Direct Investment: The establishment of a Th iN ga nH plant or distribution network abroad Investors can acquire part or all of the equity of an existing foreign corporation either to control or share control over sales, production, and research and development ThiNganHang.com an g co m The basic questions of FDI (6W+H) Who? (is the investor) What? (kind of FDI) nH Why? (are we investing) ga Where? (is the FDI going) Th iN When? (do we invest) How? (the mode of entry) ThiNganHang.com an g co m Types of FDI Horizontal FDI arises when a firm duplicates its Th iN ga nH home country-based activities at the same value chain stage in a host country through FDI Platform FDI Foreign direct investment from a source country into a destination country for the purpose of exporting to a third country Vertical FDI takes place when a firm through FDI moves upstream or downstream in different value chains i.e., when firms perform value-adding activities stage by stage in a vertical fashion in a host country ThiNganHang.com an g co m O = Ownership advantages ga nH Some firms have a firm specific capital known as knowledge capital: Human capital (managers), patents, technologies, brand, reputation… Th iN This capital can be replicated in different countries without losing its value, and easily transferred within the firm without high transaction costs ThiNganHang.com ... m Types of FDI Horizontal FDI arises when a firm duplicates its Th iN ga nH home country-based activities at the same value chain stage in a host country through FDI Platform FDI Foreign... ThiNganHang.com an g co m The basic questions of FDI (6W+H) Who? (is the investor) What? (kind of FDI) nH Why? (are we investing) ga Where? (is the FDI going) Th iN When? (do we invest) ... destination country for the purpose of exporting to a third country Vertical FDI takes place when a firm through FDI moves upstream or downstream in different value chains i.e., when firms perform