FOREIGN DIRECT INVESTMENT ANALYSIS

Suk H. Kim

Chapter 14 in Global Corporate Finance:A Focused Approach, 2023, pp 325-360 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Direct investments are equity investments such as the purchase of common stock, the acquisition of entire firms, or the establishment of new subsidiaries. The US Department of Commerce defines foreign direct investment (FDI) as investment in either real capital assets or financial assets with a minimum of 10 percent equity ownership in a foreign firm. These days companies look for and need to explore growth opportunities on a global basis. In principle, growth of the foreign presence in any national economy could take place in either of two ways. Companies could grow primarily through the construction of new production facilities in a foreign country, financed either through the establishment of new subsidiaries or through investment by their existing facilities in the foreign country. Alternatively, companies could grow through acquisition of existing foreign firms…

Keywords: Global Finance; International Finance; International Financial Management; International Accounting; International Business; International Business Finance; Foreign Trade; International Economics; Foreign Exchange; International Corporate Finance; Multinational Finance; International Taxation (search for similar items in EconPapers)
JEL-codes: F F21 F23 F3 F30 F31 G3 (search for similar items in EconPapers)
Date: 2023
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