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• THE PURCHASE OF PHYSICAL ASSETS OR A
IS    SIGNIFICANT AMOUNT OF THE OWNERSHIP


     • A COMPANY IN ANOTHER COUNTRY
OF

     • GAIN A MEASURE OF MANAGEMENT
TO    CONTROL.
2. Worldwide flows of
                     FDI

1. Growth                           3. Firms as
                                     seekers
RESOURCES        ADVANTAGES        KNOWLEDGE            SECURITY           MARKETS

• Unique and      • Resources.      • Acquire other    • Seek political   • The ability to
  valuable        • Low cost          firms in other     stability or       gain and
  natural           labor.            countries.         security.          maintain
  resources for   • Move            • Technology ,     • México             markets is not
  their             production to     competitive        increased FDI.     the principal
  products.         another           skills.                               reason.
                    place.          • In and around                       • Learn.
                  • Products and      centers of
                    markets           industrial
                    mature.           enterprise
                                      unique to
                                      specific
                                      industry.
HORIZONTAL
           Where the firms expands by entering
                   a foreign market.


TYPES OF
   FDI
                       VERTICAL
             Denotes the simultaneous vertical
                       integration
INTERNATIONAL         MARKET
PRODUCT LIFE CYCLE   IMPERFECTIONS




 ECLECTIC THEORY     MARKET POWER
Technlogy transfer


   Training for
   employees


Increased income
Formation of a local
     monopoly:




  Lack of attention to
 the development of
education and training
  in the host country:
FDI

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FDI

  • 1.
  • 2. • THE PURCHASE OF PHYSICAL ASSETS OR A IS SIGNIFICANT AMOUNT OF THE OWNERSHIP • A COMPANY IN ANOTHER COUNTRY OF • GAIN A MEASURE OF MANAGEMENT TO CONTROL.
  • 3. 2. Worldwide flows of FDI 1. Growth 3. Firms as seekers
  • 4.
  • 5.
  • 6. RESOURCES ADVANTAGES KNOWLEDGE SECURITY MARKETS • Unique and • Resources. • Acquire other • Seek political • The ability to valuable • Low cost firms in other stability or gain and natural labor. countries. security. maintain resources for • Move • Technology , • México markets is not their production to competitive increased FDI. the principal products. another skills. reason. place. • In and around • Learn. • Products and centers of markets industrial mature. enterprise unique to specific industry.
  • 7. HORIZONTAL Where the firms expands by entering a foreign market. TYPES OF FDI VERTICAL Denotes the simultaneous vertical integration
  • 8. INTERNATIONAL MARKET PRODUCT LIFE CYCLE IMPERFECTIONS ECLECTIC THEORY MARKET POWER
  • 9.
  • 10.
  • 11.
  • 12.
  • 13. Technlogy transfer Training for employees Increased income
  • 14. Formation of a local monopoly: Lack of attention to the development of education and training in the host country: