Lecture International trade and investment: Chapter 4 - John Gionea

Chapter 4: Foreign Direct Investment: Practice and Theory Geographic trends The Trojan Horse? FDI Outward stock Copyright ©2003 McGraw­Hill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea 1 TOPIC PLAN: Determinants of Foreign Direct Investment(FDI) FDI Concepts » FDI Outflows/FDI Inflows » Outward & Inward FDI Stock » Mergers and Acquisitions Sectoral Distribution of FDI Theories of FDI: Global Horizons; The International Product Cycle; Internalisation Copyright ©2003 McGraw­Hill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea 2 Foreign Direct Investment (FDI) An investment involving management control of a resident entity in one economy (THE HOST COUNTRY), by an enterprise in another economy (THE HOME COUNTRY). FDI involves a long-term relationship reflecting an investor’s lasting interest in a foreign entity. The investor=The PARENT firm and the foreign entity/asset= the “affiliate” (“subsidiary”) Copyright ©2003 McGraw­Hill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea 3 Average annual growth rate,World FDI Outflows, Exports of Goods & Services, GDP 40 35 30 25 FDIOutflows 20 Exports of G&S % p.a5 GDP 10 5 0 1986-1990 1991-1995 1996-1999 Copyright ©2003 McGraw­Hill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea 4 Flow vs. Stock of FDI Flow: Amount of FDI over a period of time (one year). Stock: Total accumulated value of foreign owned assets at a given point in time. Copyright ©2003 McGraw­Hill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea 5 ... - tailieumienphi.vn