Question:
Why do firms invest abroad, and what the positive and negative consequences can be for home and host countries?
See Also
FACT SHEET: Accelerating the U.S. – Africa Partnership After the 2022 U.S.-Africa Leaders Summit | The White HouseForeign investment in the United StatesInvestment freedom by country, around the world | TheGlobalEconomy.comName the Asian country that invested heavily in human resources.Effects of Foreign Direct Investment (FDI).
Firms invest in foreign countries either through partnership or establishing branches. These firms which has branches globally are called Multinational Companies (MNCs). They invest in other nation to access wider markets, formation of distribution networks and existence of available cheap labor especially in developing countries. These investments by MNCs in foreign land are called Foreign Direct Investment (FDI). Over the recent years, FDI are of international concern due to issue of free trade and globalization.
Answer and Explanation:1
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Why do firms invest abroad?
- Looking for markets. Companies go overseas to find new potential buyers from their goods and services. A company with...
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