Foreign Direct Investment involves companies investing in other countries for market entry. Transnational Corporations like Foxconn, Hyundai, and BMW establish in the US for various advantages. Challenges to foreign investors include profit distribution limitations and government regulations.
Foreign Direct Investment (FDI) refers to the control of a business in one country by a company based in another country. It involves companies investing in other countries to gain market entry, take advantage of geographical differences, and access new markets.
Transnational Corporations (TNCs) dominate modern industry, coordinating processes within and between countries. TNCs like Foxconn, Hyundai, and BMW establish themselves in the United States for advantages such as reducing shipping costs and accessing a large market.
Challenges to foreign investors include limitations on profit distribution, currency exchange restrictions, and government regulations affecting the cost of doing business, which can impact the attractiveness of countries for investment.
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