4.4 - Global industries and companies (MNCs)

Question 1

What is foreign direct investment (FDI)?

Answer 1

A substantial and long lasting investment made by a business or government into another country. Investment by foreign firms which results in more than 10% share of ownership of domestic firms. e.g. Nissan, a Japanese firm, building a car factory in the UK.

• Inward FDI occurs when a foreign business invests in the local economy
• Outward FDI occurs when a domestic business expands its operations to a foreign country

Question 2

Describe the EU and the single market trading block

Question 3

Describe the ASEAN trading block

Question 4

Describe the USMCA trading block

Answer 4

United States–Mexico–Canada Agreement - an intergovernmental agreement between North American Nations (i.e. US, Mexico & Canada) that reduced trade barriers. Formerly called NAFTA