Purchase Solution

Foreign Direct Investment Theory

Not what you're looking for?

Ask Custom Question

Several theories attempt to explain why firms undertake foreign direct investment. These theories include the international product life cycle theory, market imperfections theory, the eclectic theory and the market power theory. Which of these theories seem most appealing to you? Why is it appealing? Can you think of one or more companies that seem to fit the pattern described by the theory? In your opinion, what faults do the alternative theories have?

Purchase this Solution
Solution Summary

This solution of over 300 words discusses why firms undertake foreign direct investment and which theory is more appealing and what the alternatives are.

Solution Preview

Dear Student,

Please find help and some guidelines related to foreign direct investment in attached file.
The content below ...

Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

View More Free Quizzes
Related BrainMass Solutions

  • foreign direct investment

    References: Foreign direct investment: theory, evidence, and practice, Imad A.

  • Entry Mode

    What is Foreign direct investment?

  • Global Business Environment

    This theory is used to describe the direct investment industrial structure and also explains the geographical patterns of foreign direct investment.

  • Foreign Investments

    Foreign Direct Investment: Theory, Evidence and Practice. Palgrave Macmillan https://www.sec.gov/investor/pubs/ininvest.htm This solution explains the benefits of foreign investment and risks associated with it.

  • Foreign country investments

    A foreign investment (FDI) is a company controlled through ownership by a foreign company of foreign individuals. Control must accompany the investment; otherwise it is a portfolio investment.

  • The Roles of Major International Financial Organizations

    This solution provides explanations for the roles of major financial organizations, finance and foreign direct investment, and major foreign exchange challenges.

  • International business practice questions.

    Which of the following is an example of direct foreign investment?

  • free trade and outsourcing

    By doing so, countries would create the environment for the free movement of job-creating foreign direct investment and products that would create the ideal world that only exists in economists theories. Hope this helps!

  • globalization

    For this purpose, these organizations invest into some foreign countries. Foreign Direct Investment (FDI) is a form of investment in which a company invests in some foreign country (Foreign Direct Investment, n.d.).

View More Related Solutions