Different types of FDI Flashcards
1
Q
4 types of FDI
A
Offshoring
Foreign Mergers
Foreign Acquisitions
Transfer Pricing
2
Q
FDI
A
financial addition made by a TNC into a nation’s economy, either to build new facilities (factories or shops) or to acquire/merge with a firm already based there
3
Q
Offshoring
A
TNCs build their own new production facilities in ‘offshore’ low-wage economies
4
Q
Foreign Mergers
A
Two firms in different countries join forces to create a single entity
5
Q
Foreign Acquisitions
A
When TNC launches a takeover of a company in another country
6
Q
Transfer Pricing
A
TNCs have sometimes channelled profits through a subsidiary company in a low-tax country such as Ireland
