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310 lecture 9

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Lecture 9

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310 lecture 9

  1. 1. International Economics Lecture 9
  2. 2. Foreign Direct Investment
  3. 3. Foreign Direct Investment FDI
  4. 4. Organization for Economic Development and Cooperation
  5. 5. Organization for Economic Development and Cooperation OEDC Paris 29 Countries
  6. 6. FDI
  7. 7. FDI Inflow - Each yearStock - AccumulationOutflow - Each year
  8. 8. FDIYear Inflow Outflow Stock 1 100 0 100 2 150 0 250 3 0 25 225 4 50 0 275
  9. 9. FDI - Two Types
  10. 10. FDI - Two Types Greenfield - NewMergers and Acquisitions
  11. 11. FDI 2001 2004 2008Greenfield 22% 41% 60% M &A 78% 59% 40%
  12. 12. Why FDI?
  13. 13. Why FDI? CircumventProtectionism
  14. 14. Why Merger & Acquisition?
  15. 15. Why Merger & Acquisition? Quick Strategic Assets Improve Productivity
  16. 16. Three Choices
  17. 17. Three Choices Export License FDI
  18. 18. Limitations of Exporting
  19. 19. Limitations of Exporting Transportation Costs Value to Weight Ratio Trade Barriers
  20. 20. Limitations of Licensing
  21. 21. Limitations of Licensing Lose Technology Lose Mfg. & Mkt.Hard to license brand culture

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