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10 Cards in this Set
- Front
- Back
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Why is American FDI at an all time high?
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global competition, liberalization of host governments, advances in technology
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Why do managers focus on major trading partner countries? (7)
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favorable regulations, favorable business climate, minimal cultural hurdles, transportation already established, import channels established, foreign exchange rates, government pressure.
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Where are major trade flows?
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Among developing nations
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What are the two aspects of foreign investment?
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portfolio investment and direct investment
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What is portfolio investment?
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the purchase of stock and bonds of firms in other countries to obtain a return on the funds invested
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What are the two dimensions of foreign direct investment?
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Volume of outstanding stock of FDI (the book value of all FDI), and the annual inflows and outflows of FDI (the amount invested each year across national borders.
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What can we find out about the level and direction of FDI?
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can only get an idea of the rate and amounts of such investments and of the places in which they are made
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Which comes first, trade or FDI?
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trade, because it is less risky then FDI and costs less.
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why do firms enter foreign markets?
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increase sales and profits, protect domestic market, guarantee supply chain, acquire technology, diversify, follow customers, satisfy desire for expansion, bypass protectionist rules
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How does management globalize a firm?
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through products, markets, promotion, competitive strategy, use of non-home-country personnel,
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