Foreign Direct Investment

Feb 3rd, 2012
Studypool Tutor
University of Oxford
Price: $5 USD

Tutor description

It is the objective of any business enterprise to expand its market reach either in the domestic or international arena (Khor, 1998). Most business choose to set up junior companies in foreign lands, purchase shares or invest equity in overseas countries like Chile, Japan, Indonesia and South Africa. It is the dream of the investing company that the returns will be worth the risk of investment (Khor, 1998). The scenario where a company buys another company in a foreign land or merges with a foreign company or even purchases majority shares in a foreign firm.

Word Count: 1216
Showing Page: 1/6
Foreign Direct Investment PaperStudent's NameAffiliationForeign Direct InvestmentIntroductionIt is the objective of any business enterprise to expand its market reach either in the domestic or international arena (Khor, 1998). Most business choose to set up junior companies in foreign lands, purchase shares or invest equity in overseas countries like Chile, Japan, Indonesia and South Africa. It is the dream of the investing company that the returns will be worth the risk of investment (Khor, 1998). The scenario where a company buys another company in a foreign land or merges with a foreign company or even purchases majority shares in a foreign firm. That scenario is what is regarded to as Foreign Direct Investment (Khor, 1998). It defers from indirect foreign investment in that, the decision to invest in that particular foreign company should substantially influences the economic might of the investor company. Indirect investment follows the commission of portfolio flows, for example in the national stock exchange market of that foreign country (Vorton, 2010). In the situation that an America company wants to make a foreign direct investment in Japan by the purchase of majority shares. The American company must own a minimum of ten percent of all voting shares for the investment to be termed as a foreign direct investment. The investor company can as get into a joint venture with a Japan's company that specializes in similar or almost similar busine

Review from student

Studypool Student
" Thank you, Thank you, for top quality work, this is your guy!! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1830 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors