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Foreign Direct Investment - Essay Example

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Author : corrine07


The global economies have become highly dynamic operating extensive through trade partnerships and unions. Indeed, the notion that cooperation can spell success has become the prime motivator for economies to open their markets. Through this vision, trade agreements were propagated and the barriers that limit international exchange were gradually reduced…

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Foreign Direct Investment

In addition, the continuous change in technology also pushed for firms penetrating other markets. For most trans-national corporations (TNCs), the schemes associated with maximising foreign direct investment (FDI) are intricate. These processes are developed through time considering the environmental changes and other circumstantial elements. Logically, the methods in which FDI is maximised by TNCs can be attributed to their nature and existence.
Holistically, focusing on TNCs in discussing FDI requires the profound understanding of the two concepts. It is imperative to establish relationships and determine useful trends regarding the subjects. In this process, the extraction of empirical evidence is a necessity and has to be manifested with high level of credibility. Moreover, in-depth analysis will be provided to ensure that the desired outcomes will be realised.
The most qualifying description of a firm to consider as a trans-national is its operations. Accordingly, corporations that function in two or more countries are defined as TNCs. Moreover, the general view of TNC is divided into three subgroups. First, horizontally integrated TNCs administer production in different locations to manufacture similar products. ...
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