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Flashcards in Different types of FDI Deck (6)
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1
Q

4 types of FDI

A

Offshoring

Foreign Mergers

Foreign Acquisitions

Transfer Pricing

2
Q

FDI

A

financial addition made by a TNC into a nation’s economy, either to build new facilities (factories or shops) or to acquire/merge with a firm already based there

3
Q

Offshoring

A

TNCs build their own new production facilities in ‘offshore’ low-wage economies

4
Q

Foreign Mergers

A

Two firms in different countries join forces to create a single entity

5
Q

Foreign Acquisitions

A

When TNC launches a takeover of a company in another country

6
Q

Transfer Pricing

A

TNCs have sometimes channelled profits through a subsidiary company in a low-tax country such as Ireland