Term
| Foreign direct investment (FDI) |
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Definition
| Investment in controlling and managing value-added activities in other multiple countries |
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Term
| Multinational enterprise (MNE) |
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Definition
| A firm that engages in foreign direct investment and operates in multiple countries |
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Term
| Foreign portfolio investment ( FPI) |
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Definition
| Investment in a portfolio of foreign securities such as stocks and bonds |
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Term
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Definition
| An operation with shared ownership by several domestic or foreign companies |
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Term
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Definition
| A type of FDI in which a firm duplicates its home country-based activities at the same value chain stage in a host country |
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Term
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Definition
| A type of FDI in which a firm moves upstream or downstream in different value chain stages in a host country |
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Term
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Definition
| A type of vertical FDI in which a firm engages in an upstream stage of the value |
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Term
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Definition
| A type of vertical FDI in which a firm engages in a downstream stage of the value chain in two different countries |
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Term
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Definition
| The amount of FDI moving in a given period ( usually a year) in a certain direction |
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Term
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Definition
| The total accumulation of inbound FDI in a country or outbound FDI from a country across a given period of time (usually several years) |
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Term
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Definition
| A theoretical framework positing that ownership (O), locational (L) and internationalization (I) advantages combine to induce firms to engage in FDI |
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Term
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Definition
| Resources of the firm that are transferable across borders , and enable the firm to attain competitive advantages abroad |
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Term
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Definition
| Advantages enjoyed by firms operating in certain location |
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Term
| Internationation advantages |
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Definition
| Advantages of organisaing activities within a multinational firm rather than using a market transaction |
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Term
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Definition
| The replacement of cross-border markets ( such as exporting and importing) with one firm ( the MNE) |
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Term
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Definition
| Resources that cannot be transferred abroad |
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Term
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Definition
| The location advantages that arise from the clustering of economic activities in certain locations |
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Term
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Definition
| Knowledge diffused from one firm to others among closely located firms |
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Term
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Definition
| Imperfections of the market mechanism that make some transactions prohibitively costly |
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Definition
| An investment that is specific to a business relationship |
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Term
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Definition
| International trade between two subsidiaries in two countries controlled by the same MNE |
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Term
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Definition
| The risks associated with unauthorised diffusion of specific know-how |
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Term
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Definition
| Knowledge that is non-codifiable , and whose acquisition and transfer require hands-on practice |
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Term
| Local content requirements |
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Definition
| These requirements state that a certain proportion of the value of the goods made in the country should originate from that country |
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Term
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Definition
| The ability to extract a favourable outcome from negotiations due to one party's strengths |
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Term
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Definition
| Refers to the deal struck by MNEs and host government, which change their requirements after the initial FDI entry |
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Term
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Definition
| Up-front investments that are non-recoverable if the project is abondoned |
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Term
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Definition
| Governments' confiscation of private assets |
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