MGC2120 Chapter Notes - Chapter 8: Gross Fixed Capital Formation, Foreign Direct Investment, Greenfield Project
20 Jan 2017
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Document Summary
International business chapter 8 foreign direct investment. Fdi in the world economy the flow of fdi: the amount of fdi undertaken over a given time period (a year). The stock of fdi: the total accumulated value of foreign-owned assets at a given time. Has increased since the past 30 years. Secondly, in crease in fdi has been driven by the political and economic changes that have been occurring in many of the world"s developing nations. General shift toward democratic political institutions and free market economies has encouraged fdi. Programs are open to foreign investors, and removal of many restrictions on fdi. The globalization of the world economy impacts the volume of fdi. Has been directed at the developed nations because of its large and wealthy domestic markets, dynamic and stable economy, a favourable political environment and openness of the country to fdi. Recent inflows into developing nations have been targeted at the emerging economies of south, east and.
