Foreign Direct Investment

Group 4 [Type the company address] Prita Nanda Utami Tenny Yanutriana 08 Fall FOREIGN DIRECT INVESTMENT Definition impertinent drive investment funds (FDI) plays an extraordinary and growing role in global business. It set up provide a firm with new markets and marketing channels, cheaper mathematical product facilities, access to new applied science, products, skills and financing. For a host country or the foreign firm which receives the investment, it toilet provide a seminal fluid of new technologies, capital, processes, products, organizational technologies and management skills, and as such can provide a strong impetus to economic development.   Foreign direct investment, in its classic exposition, is defined as a company from one country fashioning a physical investment into building a factory in another(prenominal) country. The direct investment in buildings, machinery and equipment is in contrast with making a portfolio investment, which is considered an indirect investment. In recent years, given quick growth and change in global investment patterns, the definition has been broadened to include the acquisition of a lasting management bear on in a company or enterprise alfresco the investing firms home country.

As such, it whitethorn take many forms, such as a direct acquisition of a foreign firm, construction of a facility, or investment in a joint venture or strategic alliance with a local firm with incident input of technology and licensing of intellectual property. In the past decade, FDI has be fare to play a major role in the internationalization of business. Reacting to changes in technology, growing liberalization of the national regulatory manakin governing investment in enterprises, and changes in capital markets central changes ware occurred in the size, scope and methods of FDI. New information technology systems, decline in global communication costs have made management of foreign investments far easier than in the past. The ocean change in trade and investment policies and the... If you want to get a full essay, order it on our website: Orderessay

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