Ch 7 Foreign Direct Investment

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    1

    PartTh

    ree

    Global

    Trade

    andInvestm

    entEnviron

    ment

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    7

    1.

    2.

    3.

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    1.

    q .

    q , . (Foreign portfolio investment).

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    ?

    q .

    q greenfield

    q .

    q :

    .

    q M&A vs. Greenfield investment

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    -

    0

    200

    400

    600

    800

    1000

    1200

    84 85 86 87 88 89 90 91 92 93 94 95 96 97 98

    FDI

    World Trade

    World Output

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    WHY IS FDI GROWING MORERAPIDLY THAN WT OR WO?

    q Can circumvent future trade barriers.

    q World political and economic change. Democratization of markets.

    q Globalization of world markets.

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    CHANGING FACE OF CHINAS

    FOREIGN INVESTMENT

    0

    5

    10

    15

    20

    25

    88 90 92 94 96 97

    Joint Venture

    Wholly Owned

    Source: WSJ, June 11, 1998

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    -

    q

    q

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    know how-

    know-how-

    Know-how

    : know-how-

    2. , , ?

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    q ? -to- (, )

    , , ,

    q

    - .

    q

    .

    q

    2. ?

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    3.

    q ( ).

    q

    ( ).

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    3. , ,

    q ?

    .

    .

    q . know-how-

    .

    .

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    ??

    know-howknow-how

    ??

    ??know-howknow-how

    ??

    No

    High

    Yes

    Yes

    Low

    No

    Yes

    No

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