Explore BrainMass
Share

foreign direct investment

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

Using any two of the four FDI theories [international product life cycle, market imperfections, eclectic, market power], explain why companies engage in foreign direct investment.

© BrainMass Inc. brainmass.com September 25, 2018, 7:51 am ad1c9bdddf - https://brainmass.com/business/foreign-direct-investment/foreign-direct-investment-442746

Solution Preview

Using any two of the four FDI theories [international product life cycle, market imperfections, eclectic, market power], explain why companies engage in foreign direct investment.

The FDI theory of international product life cycle holds that if he demands for a new product in other countries becomes significant; it becomes worthwhile for the innovating firm to set up production facilities in those countries. This leads to foreign direct investment. At the same time a firm may make ...

Solution Summary

This solution gives you a detailed discussion on foreign direct investment

$2.19