Term
| Foreign direct Investment |
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Definition
| Purchase of physical assets or a significant amount of the ownership (stock) of a company in another country to gain a measure of management control |
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Definition
| investment that does not involve obtaining a degree of control in a company |
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Term
| International product life cycle |
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Definition
| Theory stating that a company begins by exporting its product and then later undertakes foreign direct investment as the product moves through life cycle |
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Term
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Definition
| Theory stating that when an imperfection in the market imperfection in the market makes a transaction less efficient than it could be, a company will undertake foreign direct investment to internalize the transaction and thereby remove the imperfection |
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Definition
| Theory stating that firms undertake foreign direct investment when the features of a particular location combine with ownership and internalization advantages to make a location appealing for investment |
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Term
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Definition
| Extension of a company activities into stages of production that provide a firm's inputs (backward integration) or that absorb its output ((forward integration)) |
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Definition
| System of production in which each of a product's components is produced where the cost of producing that component is lowest |
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Definition
| National accounting system that recorders all receipts coming into the nation and all payment s to entries in other countries |
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Definition
| National account that records transaction involving the export and importing of goods and services, income receipts on assets abroad, and income payments on foreign assets inside the country |
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Definition
| When a country exports more goods and services and receives more income from abroad than it imports and pays abroad |
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Definition
| When a country imports more goods and services and pays more abroad than its exports and receives from abroad |
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Term
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Definition
| National account that records transactions involving the purchase and sale of assets |
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