POLSCI 2J03 Chapter Notes - Chapter 7: Multinational Corporation, Foreign Direct Investment, Oligopoly
20 Jun 2014
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Refers to investment made outside the home country of the investing company in which control over the resources transferred remains with the investor. Consists of a package of assets and intermediate goods such as capital, technology, management skills, access to markets and entrepreneurship (fdi entails control of business decisions the buyers directly control the decisions and the management of the factory) Most concretely, it may take the form of buying or constructing a factory in a foreign country or adding improvements to such a facility, in the form of property, plants, or equipment. -> refers to specific assets and intermediate products, for example, capital, debt or equity, technology which are separately transferred between two independent economic agents through the modality of the market. In this instance, the control over resources is relinquished by the seller to the buyer and only financial resources are transferred (those who buy do not control decisions)
