• Investment of capital in manufacturing transport, agricultural & commercial assets • Supervision of employees in different countries • Investment in international services • Transactions involving intellectual properties.
All of these activities can take place between individual firms,
• Economic growth and environmental stress • Growing income inequality and personal stress • Offshoring – the transferring of production abroad – is controversial in terms of who benefits when costs are reduced and whether the process exchanges good jobs for bad ones.
- Control - Access to foreign markets - Access to foreign resources - Partial ownership for some times - Higher foreign sales then exporting (often) Two forms of direct investment: • Joint venture: Two or more companies share ownership of an FDI. • Mixed venture: A government joins a company in an FDI.
2) Portfolio Investment: It refers to a non controlling interest in a
company or ownership of a loan to another party. It usually takes one of two forms: • a) Stock in a company b)Loan to a company or a country.
global approach to markets and production. Sometimes they are referred to as multinational corporations or companies (MNCs) or transnational companies (TNCs).
environment, its managers must have knowledge of business operations and a working knowledge of social sciences, and how they affect all functional business fields.
• International business will grow primarily along regional rather than global lines. • Forces working against further globalization and international business will slow down both trends.
