SOSC 1430 Chapter Notes - Chapter Pages 197-216: Foreign Direct Investment, Multinational Corporation, Foreign Portfolio Investment
3 Oct 2016
School
Department
Course
Professor
Document Summary
Multinationals - some have attracted negative media attention; some that have acted constructively to support local communities and economic development. As a result of their size, economic importance, role in trade, and global production chains, multinational corporations are drivers of globalization and important actors with real consequences in the developing world. Various terms used to describe mncs and their activities - transnational corporations (tncs), multinational enterprises (mnes), and foreign direct investment (fdi) - terms can be interchangeable. Differences stem from disciplinary and institutional divides and practices - mnc is most widely used term, employed by political scientists, sociologists, and media; tnc by united. Nations system; mne used in international business studies; fdi by economists, which refers to investment that is made across borders. Direct in foreign direct investment indicates the investment has a physical presence or corporate form (such as a branch plant) and differentiates from indirect investment, also known as foreign portfolio investment" or hot capital" ows.
