Zusammenfassung der Ressource
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
- Prefer FDI over licensing when
- Protect knowledge know how
- tight control over manufacturing etc
- not suitable to licensing
- Knickerbocker theory
- Dunning - FDI to exploit resource endowments location specific
- Political ideology
- Radical stance
- Noninterventionist
- Pragmatic nationalism
- Benefits & Costs to Host Countries
- + employment
- + BOP effect
- + resource transfer effects
- - national sovereignty
- - competition
- - BOP
- Benefits & costs to source countries
- Govt encourage FDI through incentives
- Govt discourage FDI through ownership restrictions and performance requirements