English Economics: Foreign Direct Investment

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Definition  Foreign Direct Investment: The establishment of a plant or distribution network abroad. Investors can acquire part or all of the equity of an existing foreign corporation either to control or share control over sales, production, and research and development.

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The basic questions of FDI (6W+H)  Who? (is the investor)  What? (kind of FDI)  Why? (are we investing)  Where? (is the FDI going)  When? (do we invest)  How? (the mode of entry)

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