(See related pages)
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| balance-of-payments accounts | National accounts that track both payments to and receipts from foreigners. (See page(s) 245) |
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| current account | In the balance of payments, records transactions involving the export or import of goods and services. (See page(s) 245) |
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| eclectic paradigm | Argument that combining location-specific assets or resource endowments and the firm’s own unique assets often requires FDI; it requires the firm to establish production facilities where those foreign assets or resource endowments are located. (See page(s) 235) |
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| exporting | Sale of products produced in one country to residents of another country. (See page(s) 235) |
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| externalities | Knowledge spillovers. (See page(s) 240) |
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| flow of FDI | The amount of foreign direct investment undertaken over a given time period (normally one year). (See page(s) 226) |
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| foreign direct investment (FDI) | Direct investment in business operations in a foreign country. (See page(s) 226) |
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| green-field investment | Establishing a new operation in a foreign country. (See page(s) 226) |
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| gross fixed capital formation | Summarizes the total amount of capital invested in factories, stores, office buildings, etc. (See page(s) 228) |
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| inflows of FDI | Flow of foreign direct investment into a country. (See page(s) 226) |
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| internalization theory | Marketing imperfection approach to foreign direct investment. (See page(s) 236) |
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| licensing | Occurs when a firm (the licensor) licenses the right to produce its product, use its production processes, or use its brand name or trademark to another firm (the licensee). In return for giving the licensee these rights, the licensor collects a royalty fee on every unit the licensee sells. (See page(s) 235) |
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| location-specific advantages | Advantages that arise from using resource endowments or assets that are tied to a particular foreign location and that a firm finds valuable to combine with its own unique assets (such as the firm’s technological, marketing, or management know-how). (See page(s) 239) |
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| Multilateral Agreement on Investment (MAI) | An agreement that would make it illegal for signatory states to discriminate against foreign investors; would have liberalized rules governing FDI between OECD states. (See page(s) 251) |
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| multinational enterprise (MNE) | A firm that owns business operations in more than one country. (See page(s) 226) |
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| multipoint competition | Arises when two or more enterprises encounter each other in different regional markets, national markets, or industries. (See page(s) 238) |
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| oligopoly | An industry composed of a limited number of large firms. (See page(s) 238) |
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| Organization for Economic Cooperation and Development (OECD) | A Paris-based intergovernmental organization of “wealthy” nations whose purpose is to provide its 29 member states with a forum in which governments can compare their experiences, discuss the problems they share, and seek solutions that can then be applied within their own national contexts. (See page(s) 251) |
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| outflows of FDI | Flow of foreign direct investment out of a country. (See page(s) 226) |
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| stock of FDI | The total accumulated value of foreign-owned assets at a given time. (See page(s) 226) |