Foreign direct investment

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Important Concepts

Flow vs. stock

horizontal vs. vertical

backward vs. forward

entry mode

benefits of FDI for MNEs

 Uncertainties include:
   tax structures
   labor rates
   exchange rates
   government policy
   competitor moves

FDI Strategies

Resource-seeking FDI

Market-seeking FDI

Efficiency-seeking FDI

Strategic asset-seeking FDI


Product Lifecycle

Monopolistic Advantage


Eclectic Paradigm


Dynamic Capability

Evolutionary Perspective


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