FOREIGN DIRECT INVESTMENT

Foreign Direct Investment

Foreign Direct Investment

Foreign Direct Investment

Globalization is characterized by structural reforms such as liberalization of trade and investment and increased trade and international flows of investment to promote growth, altering composition and geographical distribution of economic activities, stimulate competition and facilitate international dissemination of technologies that have significant effects, both positive and negative, for sustainable development. Multinationals are vehicles for much of this global economic activity and, in turn, foreign direct investment of multinational corporations account for the growing proportion of global economic activity. Escalation of international investment means that the country's sustainable development is increasingly influenced by multinational enterprises (MNEs). Economists define as the multinational company of any company that "owns controls and manages income-generating assets in more than one country" (Dunning, 1992, p. 34). This definition distinguishes between the company dedicated to direct investment, which gives company not only functional participation in foreign company, but management control, and which is engaged in investment holding, giving company Interestingly only the financial interest in foreign company without any administrative control. THE multinational company is the company that owns or licenses its business in home and host countries. There are three major entry strategies for the multinational company to enter the foreign market, FDI, JV and licensing. (OECD 1998)

Cyberspace is the global network of computers connected by data lines and wireless high speed to strengthen national and global governance. Therefore, cyberspace joins the long tradition of new information technologies threaten to disrupt current nature of politics within nation-states. Can an e-MNE is defined as the company with facilities in several countries and its management achieved through cyberspace? An e-MNE can be defined as the virtual company that has production facilities in several countries on material goods is an advanced network of intangible goods and services reached through cyberspace management by humans or actions of some made by electronic agents, such as electronic contracts and sales automation. Of course, programming of electronic agents to deal with electronic transactions is made by humans. Therefore, the Message of multinational companies can control and manage income-generating assets in more than one country through an extension of network around world and an electronic database located in one building or location. E-multinational companies may be engaged in direct investments outside their country of origin or in traditional plants or on electronic networks worldwide sales of intangible goods and services. World production and consumption of goods and services increasingly internationalized. Globalization has brought forward emergence of digital economy? At present emerging digital economy works in tandem with traditional forms of economy, including use of part of electronic commerce and technology. Objective of analysis is examination of role of FDI in developing digital economy. (Markusen and Venables 1999)

Foreign direct investment (FDI) is vehicle by which companies achieve their strategic objectives. THE company must have an asset like product and process technology or management and marketing that can be used positively in foreign subsidiary to invest in production in foreign ...