Net Inflows in Foreign Direct Investments
FIN 4011 - Investments
University of Cincinnati
December 12, 2023
According to (World Bank, 2013) Foreign direct investments are the
net inflows of investments to acquire a lasting management interest
(10% or more of voting stock) in an enterprise operating in an
economy other than that of the investor. It is the sum of equity capital,
reinvestments of earnings, other long-term capital, and short –term
capital as shown in the balance of payments.
This series shows net inflows (new investments inflows less
disinvestments) in the reporting economy from foreign investors.
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
Foreign direct investment is a phenomenon resulting from
globalization, which involves the integration of the domestic
economic system with global markets. It is accomplished through
opening up of the local economic sector as well as domestic capital for
foreign investors to establish business, within the economy.
Historically, technological advancement led to the emergence of better
means of transport and communication. These in turn led to the
movement of investors beyond political boundaries, especially during
the post-colonial period (Pritchard, 1996). Even after nations acquired
independence, globalization continued to influence trade between
investors and foreign countries, whereby the less developed countries
were supported by the developed nations to acquire materials and
equipment to extract and utilize the available natural resources for
economic development ( Sacerdoti, 1997). However, the equipment
needed the appropriate skills to ensure that less developed countries
were able to utilize to their full potential. As economies expanded,
trade grew and exchange of goods and services continued to advance.
With the less developed economies possessing plenty of raw materials
for industries abroad, foreign investment was inevitable, as industries
from developed economies sought to establish in the less developed
countries where raw materials were available (Sornarajah, 2004).
FDI is defined as a cross-border investment in which a resident in one
economy (the direct investor) acquires a lasting interest in an
enterprise in another economy (the direct investment enterprise). The
lasting interest implies a long-term relationship between the direct
investor and the direct investment enterprise and usually gives the
direct investor an effective voice, or the potential for an effective
voice, in the management of the direct investment enterprise. By
convention, a direct investment is established when the direct investor
has acquired 10 percent or more of the ordinary shares or voting
power of an enterprise abroad (Sacerdoti, 1997).
The lasting interest in a direct investment enterprise typically involves
the establishment of manufacturing facilities, bank premises,
warehouses, and other permanent or long-term organizations abroad.
This may involve the creation of a new establishment or investment
(Greenfield investments), joint ventures, or the acquisition of an
existing enterprise abroad 3 (cross-border mergers and acquisitions).
The investment can be incorporated or unincorporated and includes,
by convention, ownership of land and buildings by individuals
(Sindre, 2011).
Direct investment comprises not only the initial transaction
establishing the FDI relationship between the direct investor and the
direct investment enterprise, but all subsequent transactions between
them and among affiliated enterprises. Thus, the direct investment
relationship extends beyond the original direct investor and includes
foreign subsidiaries and affiliates of the direct investor that are part of
the “parent group.” (World Bank, 2011)
