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Foreign Direct Investment (FDI)
A foreign investment (FDI) is a company controlled through ownership by a foreign company of foreign individuals.
Control must accompany the investment; otherwise it is a portfolio investment.
Companies want to control their foreign operations so that these operations will help achieve their global objectives. Investors who control an organization are more willing to transfer technology and other competitive assets. The idea of denying rivals access to resources is called the appropriability theory.
Governmental authorities worry that this control will lead to decisions contrary to their…
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