1. Foreign Direct Investment Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

2. International Business 5e Chapter 7 - 2 Chapter Preview Characterize global FDI flows and patterns Discuss each theory that tries to explain FDI Identify important management issues in the FDI decision Explain why home and host nations intervene in FDI flows List the methods that nations use to promote and restrict FDI

3. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall International Business 5e Chapter 7 - 3 Foreign Direct Investment  Purchase of physical assets or significant amount of ownership of a company in another country to gain some measure of management control  By contrast, portfolio investment does not involve obtaining a degree of control in a company

4. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall International Business 5e Chapter 7 - 4 Growth of World FDI vs. GDP

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