AGB 302 CHAPTER 8 AGB 302 Week 5 HW
Study online at https://quizlet.com/_7m77jq
1. Foreign Direct In- occurs when a firm invests directly in facilities to produce or market a good or
vestment (FDI) service in a foreign country
2. Greenfield In- Establishing a new operation in a foreign country
vestment
3. flow of FDI the amount of FDI undertaken over a given time period (normally 1 year)
4. Stock of FDI refers to the total accumulated value of foreign-owned assets at a given time
5. Outflows of FDI Flow of foreign direct investment out of a country
6. Inflows of FDI Flow of foreign direct investment into a country
7. Eclectic Paradigm attempts to combine the two other perspectives into a single holistic explanation
(Dunning) of foreign direct investment
8. Exporting involves producing good at home and then shipping them to the receiving country
for sale
9. licensing involves granting a foreign entity the right to produce and sell the firms products
in return for a royalty fee on every unit sold
10. Internalization explains why firms often prefer FDI over licensing as a strategy for entering foreign
Theory (market markets
imperfections)
11. Oligopoly (FT A market structure in which a few large firms dominate a market
Knickerbocker)
12. Knickerbocker Suggest that much FDI is explained by imitative Behavior by rival firms in an
Theory oligopolistic industry
1
1/4
Study online at https://quizlet.com/_7m77jq
1. Foreign Direct In- occurs when a firm invests directly in facilities to produce or market a good or
vestment (FDI) service in a foreign country
2. Greenfield In- Establishing a new operation in a foreign country
vestment
3. flow of FDI the amount of FDI undertaken over a given time period (normally 1 year)
4. Stock of FDI refers to the total accumulated value of foreign-owned assets at a given time
5. Outflows of FDI Flow of foreign direct investment out of a country
6. Inflows of FDI Flow of foreign direct investment into a country
7. Eclectic Paradigm attempts to combine the two other perspectives into a single holistic explanation
(Dunning) of foreign direct investment
8. Exporting involves producing good at home and then shipping them to the receiving country
for sale
9. licensing involves granting a foreign entity the right to produce and sell the firms products
in return for a royalty fee on every unit sold
10. Internalization explains why firms often prefer FDI over licensing as a strategy for entering foreign
Theory (market markets
imperfections)
11. Oligopoly (FT A market structure in which a few large firms dominate a market
Knickerbocker)
12. Knickerbocker Suggest that much FDI is explained by imitative Behavior by rival firms in an
Theory oligopolistic industry
1
1/4
