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en:foreign-direct-investment [2014/04/30 18:42] 200.123.220.213 |
en:foreign-direct-investment [2018/09/10 15:07] (current) federico |
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- | ====== Foreign Direct Investment ====== | + | ====== Types of Foreign Direct Investment ====== |
- | FDI is the [[investment]] of funds by people or companies of a country, in assets of another country. | + | Foreign Direct Investment is the investment of funds by people or companies of a country, in assets of another country. |
- | There are 4 main categories of foreign direct investment: | + | There are 4 main types of foreign direct investment: |
- Creation of a new company | - Creation of a new company | ||
- Adquisition an existing company | - Adquisition an existing company | ||
- | - [[Mergers]] | + | - Mergers |
- | - Reivestment of [[utilities]] | + | - Reivestment of utilities |
- | FDI entails active managemente of foreign assets, by appointing managers, establishing policies and control rules, endorsing important decisions, etc. | + | Foreign Direct Investment entails active management of foreign assets, by appointing managers, establishing policies and control rules, endorsing important decisions, etc. |
- | Foreign direct investment usually leads to technology transfer from the [[parent company]] to the [[subsidiary company]]. | + | Foreign Direct Investment usually leads to technology transfer from the parent company to the subsidiary company. |
- | FDI has been linked with corruption cases. Some companies involved in bribes are [[IBM]], [[Chevron]], [[Siemens]] and [[Total S.A.]]. | + | Foreign Direct Investment has been linked with corruption cases. Some companies involved in bribes are IBM, Chevron, Siemens and Total S.A.. |
- | ===== Vertical vs Horizontal FDI ===== | + | ===== Vertical vs Horizontal Foreign Direct Investment ===== |
- | **Vertical FDI**: only a part of the productive chain takes place abroad. | + | **Vertical Foreign Direct Investment**: only a part of the productive chain takes place abroad. |
**Horizontal**: the parent company engages in the same activities abroad. | **Horizontal**: the parent company engages in the same activities abroad. | ||
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===== Some Facts ===== | ===== Some Facts ===== | ||
- | In the map we can see, in green, wich countries generated more net FDI (outflow - inflow) per capita. | + | In the map we can see, in green, which countries generated more net Foreign Direct Investment (outflow - inflow) per capita. |
{{:en:fdi-ew.png?nolink|}} | {{:en:fdi-ew.png?nolink|}} | ||
- | The regions with more FDI per capita are [[Nordic Countries]], Western European Countries, North America and [[Australia]], [[Japan]] and [[Chile]]. | + | The regions with more Foreign Direct Investment per capita are [[Nordic Countries]], Western European Countries, North America and Australia, Japan and Chile. |
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+ | [[What is an investment project?]] |