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Chapter Outline
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Opening Case
Foreign Direct Investment in India

Introduction

Political Ideology and Foreign Direct Investment
     The Radical View
     The Free Market View
     Pragmatic Nationalism

Management Focus
FDI by Volvo in South Korea
     Summary

The Benefits of FDI to Host Countries
     Resource-Transfer Effects

Country Focus
Foreign Direct Investment and the Irish Miracle
     Employment Effects
     Balance-of-Payments Effects
     Effect on Competition and Economic Growth

The Costs of FDI to Host Countries
     Adverse Effects on Competition
     Adverse Effects on the Balance of Payments
     National Sovereignty and Autonomy

The Benefits and Costs of FDI to Home Countries
     Benefits of FDI to the Home Country
     Costs of FDI to the Home Country
     International Trade Theory and FDI

Government Policy Instruments and FDI
     Home-Country Policies
     Host-Country Policies
     International Institutions and the Liberalization of FDI

Implications for Managers
     The Nature of Negotiation
     Bargaining Power

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case
Foreign Direct Investment in Venezuela's Petroleum Industry

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