Briefly describe the two main forms of fdi, Marketing Management

Assignment Help:

Economies in Asia and Latin America have been a target for two main forms of Foreign Direct Investment (FDI) by Multi National Enterprises (MNEs). Briefly describe the two main forms of FDI and the likely benefits of these to the host economies.

Acquisitions

The MNE obtains a local company and so gains control of its assets and markets. The acquired company becomes a division of the latest parent organisation. The local economy only advantages if the company was in danger of imminent collapse and had been 'saved' or was facing other significant difficulties that were subsequently solved by the buy-out. Under these circumstances the MNE will be giving continued employment.

Greenfield investment

Under this form of FDI, the MNE makes new facilities in the host country to take benefit of local conditions. The host country benefits by new employment opportunities and acquires improved skills and knowhow from the MNE as well as access to the global economy. The domestic economy should advantage from any infrastructure improvements made by the MNE, new jobs and income earned by any local suppliers. 

 


Related Discussions:- Briefly describe the two main forms of fdi

Trignometry, 2(cosx+cos2x)+sin2x(1+cos2x)=2sinx

2(cosx+cos2x)+sin2x(1+cos2x)=2sinx

Emergence of e - marketing, E - Marketing: Emergence of E - Marketing:...

E - Marketing: Emergence of E - Marketing: as the growth of Google. Com shows, some marketing principlas never changes. Markets always welcome an innovative new product, even

Explain the term open book management in shortly, Explain the term Open boo...

Explain the term Open book management in shortly. Open book management: The practice of sharing financial and performance information is frequently considered to as open

Explain the different stages of negotiation, ZEZ Company is in the business...

ZEZ Company is in the business of designing and printing bottle labels for soft drinks distributors. The company is, at present, facing very difficult times as recessionary economi

Introduction to sales promotion, Sales promotion: Meaning & definition...

Sales promotion: Meaning & definition: the word promotion originates from the Latin word "promovere" to move forward or to push forward. Sales and promotion are the two diffe

What is the meaning of societal marketing concept, What is the meaning of s...

What is the meaning of societal marketing concept? Meaning: Societal marketing concept is the idea which the organization must find out the needs, interests and wants of

Relationship marketing concept in business, Question 1: "Various factor...

Question 1: "Various factors have created a need for businesses to move from a Traditional Marketing approach to a Relationship Marketing one." (a) Describe this statement.

Shift in orientation from old concept to modern concept, A shift in orienta...

A shift in orientation (from old concept of new or modern concept): in short, the marketing concept essentially represents a shift in orientation: 1.      From production ori

Product concept, The Product Concept The product concept states that c...

The Product Concept The product concept states that consumers will favour products that offer the best quality, performance, and features, and therefore the organization shoul

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd