Chapter 9 Flashcards
refers to the direct investment in productive assets by a company incorporated or un-incorporated in a foreign country to the host country.
Foreign direct investment (FDI)
is a stage or course of action of transferring in whole or in part the ownership of a business enterprise, agency or public service from the public sector to the private sector.
Privatization
means the transfer of any government tasks and functions to the private sectors which may include providing important services like power, water, and transportation
Privatization
refers to inability of a person or an entity to pay its debts as they fall due.
Insolvency
modern insolvency legislation is on the remodeling of the financial and organizational structure of the corporation experiencing financial distress to permit rehabilitation and continuation of their business.
Consequence of insolvency
suspension of payment provision which allows the restructuring of debtor’s obligation to enable it to continue its operation.
Rehabilitative
considered as such since the purpose of the insolvency provision of the law is to effect an equitable distribution of properties among the creditors and to benefit the debtor by discharging him of his obligation for him to have a new start.
Distributive
effects of MNCs’ presence on domestic firms in the same sector
Horizontal (within or intra-industry)
occur as a result of the interaction between domestic and foreign firms that are not in the same industry.
Vertical (inter-industry)
MNCs source raw materials and intermediate products from domestic firms
Backward linkages
created through contacts between domestic and foreign firms.
Forward linkages
Philippines liberalized its FDI policies through RA 7042 or ________________
The foreign investment act
The foreign investment act
RA 7042
