国际商务_Foreign_Direct_Investment.pptVIP

Learning Objectives Be familiar with current trends regarding FDI in the world economy. Understand the different theories of foreign direct investment. Appreciate how political ideology shapes a government’s attitudes toward FDI. Understand the benefits and costs of FDI to home and host countries. Articulate the implications for management practices of the theory and government policies associated with FDI. Opening case-Starbucks Starbucks’ strategy Coffeehouse setting, “Starbuck’s experience” Superior customer service Attention to hiring, training, and compensation Motivation of employees Used nation-specific strategies Japan Britain Thailand Switzerland Implications of the case The opening case is an example of FDI. Starting in 1995, Starbucks began to move into other countries. By 2007, this FDI had transformed Starbucks into a global brand with operations in 38 countries. Introduction p152 Foreign Direct Investment occurs when a firm invests directly in facilities to produce or market products in a foreign country. Two forms: 1) green-field investment, which involves the establishment of a wholly new operation in a foreign country. 2) acquiring or merging with an existing firm in the foreign country. (minority stake – 10-49% or majority stake 50-99%) Introduction p152 This chapter looks at: Importance of FDI in the world economy. Review theories of FDI. Government policies toward FDI. Implications for business. 1. FDI in the World Economy p152 Distinguish between flow and stock. Flow: Amount of FDI over a period of time (one year) Stock: Total accumulated value of foreign owned assets at a given point in time Outflows of FDI are the flows of FDI out of a country Inflows of FDI are the flows of FDI into a country FDI is not the investment by individuals, firms or public bodies in foreign financial instruments (foreign portfolio investment). 1.1 Trends in FDI p153 There has been a marked increase in both the flow and stock of FDI in the world econom