Foreign Direct Investment
by Dayleth Martínez
1. Government Policy Instrument
2. investment made in one country into business interests located in another country
3. Entry modes disadvantages
4. Exporting
4.1. transportation cost
4.2. trade barriers
5. Licensing
5.1. drawbacks
5.2. market imperfections
6. Pattern
7. Knickerbocker's theory
7.1. imitative behavior
8. Vernon's product life-cycle theory
8.1. initiation of FDI
8.2. particular stages
8.2.1. I. Introduction
8.2.2. II. Growth
8.2.3. III. Maturity or Stabilization
8.2.4. IV. Decline
9. Eclectic paradigm
9.1. location-specific advantages
9.2. begin to exploit resources
10. Home countries
10.1. polices to encourage and restrict FDI
11. Host countries
11.1. attract FDI
11.1.1. by offering incentives
11.2. try to restrict FDI
11.2.1. by dictating ownership
12. Greenfield investment
12.1. new operation
13. Main forms
14. incorporate with an existing company in a foreing country
15. World Economy
16. Flow
16.1. outflows
16.2. inflows
17. Stock
18. Political idiology
19. Radical view
19.1. Marxist theory
19.2. MNE as instrument of imperialist
20. Free Market View
20.1. classical economics
20.2. international trade theories
20.3. distribution among countries
20.4. theory of comparative advantage
21. Pragmatic Nationalism
21.1. benefit a host country
21.2. foreign rather than domestic
21.2.1. profits go abroad