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Investing Abroad Directly

Across
a political view that suggests that FDI unrestricted by government intervention is best
a firm’s quest for ownership (O) advantages, location (L) advantages, and internalization (I) advantages via FDI
government’s confiscation of foreign assets
the right to appoint key managers and establish control mechanisms
(knowledge being diffused from one firm to others among closely located firms)
industry dominated by a small number of players
a type of FDI in which a firm duplicates its home country-based activities at the same value chain stage in a host country
cost that a firm has to endure even when its investment turns out to be unsatisfactory
a political view that is hostile to FDI
Down
Firm A’s agreement to give Firm B the rights to use A’s proprietary technology (such as a patent) or trademark (such as a corporate logo) for a royalty fee paid to A by B; this is typically done in manufacturing industries
a political view that only approves FDI when its benefits outweigh its costs
deal struck by MNEs and host governments, which change their requirements after the initial FDI entry
(risk associated with unauthorized diffusion of firm-specific know-how)
a state-owned investment fund composed of financial assets such as stocks, bonds, real estate, or other financial instruments funded by foreign exchange assets
the amount of FDI moving in a given period (usually a year) in a certain direction
a type of FDI in which a firm moves upstream or downstream at different value chain stages in a host country