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17 Cards in this Set
- Front
- Back
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greenfield investment |
which involves the establishment of a new operation in a foreign country (FDI's 1 of 2 main forms) |
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flow of FDI |
refers to the amount of FDI undertaken over a given time period (normally a year) |
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stock of FDI |
refers to the total accumulated value of foreign-owned assets at a given time |
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outflows of FDI |
meaning the flow of FDI out of a country |
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inflows of FDI |
the flow of FDI into a country |
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eclectic paradigm |
attempts to combine the two other perspectives into a single holistic explanation of foreign direct investment |
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exporting |
involves producing goods at home and then shipping them to the receiving country for sale |
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licensing |
involves granting a foreign entity, the right to produce and sell the firms product in return for a royalty fee on every unit sold |
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internalization theory |
seeks to explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets |
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market imperfections |
seeks to explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets aka internalization theory |
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oligopoly |
an industry composed of a limited number of large firms |
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multipoint competition |
arises when two or more enterprises encounter each other in different regional markets, national markets, or industries |
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location-specific advantage |
the advantages that arise from using resource endowments or assets that are tied to a particular foreign location and that a firm finds valuable to combine with its own unique assets |
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balance of payments account |
track both its payments to and its receipts from other countries |
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current account |
tracks the export and import of goods and services |
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current account deficit/ trade deficit |
arises when a country is importing more goods and services than it is exporting |
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offshore production |
refers to FDI undertaken to serve the home market |
