Foreign Direct Investment Theories And Foreign Investment

1950 Words8 Pages
Middlesex University

TRADE AND INTERNATIONAL BUSINESS ECS 2290

REPORT

FOREIGN DIRECT INVESTMENT THEORIES AND FOREIGN INVESTMENT IN LITHUANIA

MODULE LEADER: CHUNXIA JIANG
STUDENT NAME: MANTVYDAS NARUSEVICIUS
STUDENT NUMBER: M00509351

22/04/2016
CONTENTS PAGE

PAGE 3. Foreign direct investment
PAGE 3. Foreign direct investment theories
PAGE 4. Cost and benefits of FDI for the host country
PAGE 5-6-7. FDI in Lithuania according to World Bank data
PAGE 8. References

Foreign direct investment (FDI)

FDI appears when a commonly expanding or growing company is investing to a foreign country. FDI consists of the acquisition or creation of assets (e.g. firm equity, land, houses, oil-drilling rigs and etc.) undertaken by foreigners. Initial investment or ownership of the foreign equity has to be more than 10% but does not need to be a 100%. Anything less than 10% of the ownership will be called portfolio investment. Company which invests in foreign markets become a multinational enterprise (MNE).
It has been a significant increase in FDI`s over the last 30 years and this is due to more open politics and cheaper manufacturing tags in different parts of the world especially developing countries. Most FDI outflow has historically been directed at the developed nations such as U.S. Countries such as China offering great labour prices and unbeatable cost of materials for commonly most of the products are
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