chap 7 Flashcards
(5 cards)
1
Q
what is a form of foreign direct investment (FDI)?
A
acquiring a controlling interest in a foreign company
2
Q
what is the primary motive behind resource-seeking FDI?
A
to access natural resources or low-cost labor
3
Q
what is a greenfield investment in FDI?
A
establishing a new subsidiary or operation in a foreign country
4
Q
what is a risk associated with FDI?
A
political and economic instability in the host company
5
Q
what is the benefit of FDI for host countries?
A
increased job opportunities and economic growth
