INTB 2200 Study Guide - Midterm Guide: Market Distortion, Exosphere, Portfolio Investment

• School: University of Manitoba
• Department: International Business
• Course: INTB 2200
• Professor: Alokdua

Document Summary

Depends on the percentage of ibm that u were able to purchase with this money. If it"s less than 10% of the company"s outstanding stock then it will be call pi. If it"s 10% or more it calls fdi. The primary motivation of pi is to make quick profits through capital gain and div yield. The primary motivation of fdi investor is to take control of the company and make them profits. At 100%-------wholly owned subsidiary (company like this way) Less than 100% but more than 50%-------majority partnership (jv) (not like) Less than 50% but more than 10%---minority ownership (jv) (not like) Type of partner in the foreign country for fdi: none 100% ownership, but for less than 100% ownership u need partners, foreign govt, another mne, local business, local public, local individuals. Grass root fdi is not done in one go rather it"s done in stages. Contrary to popular belief it"s mostly the importer who instigates the international trade.