Define the Following Terms of Foreign Direct Investment Flashcards

An enterprise that engages in foreign direct investment and owns or controls value adding activities in more than one country; involves flows of money and direct organizational control from one country over production in another country.

Investment thats made across borders; investment that has a physical presence (i.e. buildings, technology, labour); example: a firm from one country buys a controlling investment in a firm in another country or a firm sets up a branch or subsidiary operation in another country

NOT THE SAME AS FDI!; purchase in stocks or 1loans (short term)

Home country: where the MNC has its headquarters; Host country: where the FDI is directed

Where stocks are sold and bought; function: "est. the value of corporate sales"; issued to raise capital; capital collected via insurance of stocks does not have to be returned (unlike debt)

NY, Tokyo, NASDAQ, Euronext, London, Shanghai, HK, Toronto, Frankfurt, Madrid

An index that shows how 30 large, publicly owned companies based in the US have traded during a standard trading session in the stock market; top 30 american blue chip companies

Expansion of internet phenomenon saw a huge increase in investment for IT companies

Loans were given to "risky" people/families who would never normally be granted loans

Two consecutive quarters in which a country experiences a lack of growth

Local and global processes become inextricably interwoven, i.e. dialectical movement of globalization (financial markets) and localization (housing/mortgage bubbles); -->used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market. This means that the product or service may be tailored to conform with local laws, customs or consumer preferences. Products or services that are effectively "glocalized" are, by definition, going to be of much greater interest to the end user

(62-67); focused on tariffs and anti-dumping measures; after this round, instead of negotiating product tariffs on a product by product basis, they decided to make agreements on general tariffs; during this round, the # of countries signing on to GAFF increases significantly

(73-79); tariffs, non-tariff barriers (NTBs), specific framework agreements

(86-94); 8th round of negotiations; dealt with trade liberalization (cutting tariffs, esp. agriculture and clothing) and administrative reforms

Least comprehensive of the three ways of liberalizing trade over smaller groups of countries; allows for tariff-free trade among member countries but leaves each country free to design its own policy w/ respect to non-member countries; i.e. NAFTA--the world's largest and most successful free-trade area