09 June 2005

Foreign Direct Investment (FDI) (Part I)

Types of FDI

Market seeking FDI: FDI undertaken to satisfy a particular or a set of foreign markets

Resource seeking FDI: FDI undertaken to gain access to natural resources such as minerals, oil, natural gas and agricultural products in some particular countries

Rationalised or efficiency seeking FDI: FDI undertaken to promote a more efficient division of labour or specialisation of an existing portfolio of foreign and domestic assets by MNEs

Strategic asset seeking FDI: FDI undertaken to protect or augment the existing ownership specific advantages of the investing firms or to reduce those of their rivals


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Anonymous said...

very good analysis. can u pls send me some more information about the types of fdi, especially examples of the types of fdi i.e. examples of market, resource, efficiency and strategic fdi.

Ahsan Kaleem said...

Please visit the following link for more information.


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