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Chapter Outline
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Foreign Direct Investment

Opening Case
Starbucks' Foreign Direct Investment

Introduction

Foreign Direct Investment in the World Economy
Trends in FDI
The Direction of FDI
Country Focus
Foreign Direct Investment in China
The Source of FDI
The Form of FDI: Acquisitions versus Greenfield
Investments
The Shift to Services
Theories of Foreign Direct Investment
Why Foreign Direct Investment?
The Pattern of Foreign Direct Investment
The Eclectic Paradigm
Political Ideology and Foreign Direct Investment
The Radical View
The Free Market View
Pragmatic Nationalism
Shifting Ideology
Management Focus
DP World and the United States

Benefits and Costs of FDI
Host-Country Benefits
Host-Country Costs
Home-Country Benefits
Home-Country Costs
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

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case
Cemex's Foreign Direct Investment





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