Finance Case Study

Figure 1 The FDI sequence: foreign presence and foreign investment

The Firm and its Competitive Advantage

Exploit Existing Competitive Advantage Abroad

Change Competitive Advantage

Licensing Management Contract

Control Assets Abroad

Acquisition of a Foreign Enterprise

Greenfield Investment

Production at Home: Exporting Production Abroad

Joint Venture Wholly-Owned Affiliate

Greater Foreign Presence

Greater Foreign Investment

Source: Eiteman et al (2010), Figure 16.8 © 2010 Pearson Education, Inc. Reproduced by permission of Pearson Education, Inc.