Chapter 8 focuses on the topic of foreign direct investment (FDI).
FDI occurs when a firm invests directly in new facilities to produce and/or market a product in a foreign country. The chapter looks at the when it is advantageous for a firm to invest in production facilities in a foreign country and different policies that governments have toward foreign direct investment. Some governments are opposed to FDI and some governments encourage it. The chapter also provides a discussion of the costs and benefits of FDI from the perspective of both the home country and the host country involved. The chapter concludes with a review of the policy instruments that governments use to regulate FDI activity by international firms.
For this current event assignment you are to find a news article that covers any one of these topics (described in above paragraph). Since we will review chapter 8 in class and this is due prior to that discussion it may be beneficial to at least skim the chapter prior to searching for an article.
Instructions:
Choose a newspaper (paper or online news source) and find an article that appeals to you and relates a/the topic(s) described above (from chapter 8).
Article should be at least four paragraphs long and have enough “substance” to it that you can summarize the article and explain how it applies to our course. Read the article and make sure you understand it. Take the time to think about how it relates to any topic in chapter 8 (notes above).
