Giới thiệu tài liệu
This lecture focuses on various aspects of Foreign Direct Investment (FDI), including sustaining and transferring competitive advantages, determinants of national competitive advantage, the OLI paradigm, host country selection, modes of foreign investment, and operating investment risks. The aim is to provide an overview of the key factors influencing FDI decisions and performance.
Đối tượng sử dụng
This lecture is intended for students, researchers, and managers interested in the field of Foreign Direct Investment, particularly aspects relating to competitive advantage, the OLI paradigm, host country selection, investment modes, and risk management.
Nội dung tóm tắt
The lecture delves into factors influencing a firm's Foreign Direct Investment (FDI) decisions. It highlights the importance of sustaining and transferring competitive advantages, including scale advantages, managerial and marketing skills, technology, financial strength, differentiated products, and home market competitive capabilities.
The lecture introduces the OLI paradigm, explaining why firms choose FDI over other forms of investment, focusing on ownership (O) factors, location (L) factors, and internalization (I) factors. Active and passive financial strategies are also discussed within the OLI framework.
The lecture also addresses host country selection, emphasizing that firms need to identify competitive advantages and seek market imperfections and comparative advantages. FDI sequencing and various modes of foreign investment, such as exporting, foreign manufacturing, licensing, franchising, management contracts, joint ventures, and wholly-owned subsidiaries, are also analyzed.
Operating investment risks, particularly political risk, are thoroughly examined. The lecture categorizes political risk into firm-specific, country-specific, and global-specific risks. Strategies for assessing, forecasting, and managing political risk are also discussed.
Finally, the lecture touches on post-FDI operational strategies, including local sourcing, location of production facilities, transport control, technology control, market control, trademark and brand name control, financing sources, and other factors affecting country-specific risk, transfer risk, cultural and institutional risk, and global-specific risk.