Direct Investing Strategies-
Foreign Direct Investment (FDI) is building, buying all, or buying part ownership of a business in
In sourcing- Job creation through foreign direct investments (call
Types of direct investment strategies
Joint Ventures- Operates in a foreign country through co-ownership by foreign and
local partners----->risk sharing --need complex contacts-less control-sometimes
Criteria for choosing a joint venture partner:
Familiarity with your firm's major business.
Strong Local workforce
Future expansion possibilities
Values its customers
Strong Local Market for partner's own products
Good Profit Potential
Sound financial standing.
Global Strategic alliances- a partnership in which foreign and domestic firms share
resources and knowledge for mutual gains ------>potential win win for the local
partner and outside partner
Foreign Subsidiaries- Local operation completely owned by foreign firms.
Greenfield investment-builds an entirely new operating in