Answer to Question #165905 in Management for Sinethemba

Question

Using a relevant example, examine FDI in the context of globalization.

Answer 1

Foreign Direct Investment (FDI) is a type of investment made by an individual or organization in another country. FDI has been closely associated with globalization. FDI takes place when businesses or individuals establish businesses and acquires assets in foreign countries. With the introduction and spread of globalization, FDI has been encouraged in many countries globally.  An example of FDI is the context of globalization is the establishment of manufacturing industries in various countries. With the help of globalization, many investors traveled to foreign countries focusing on establishing an operating businesses dealing with manufacturing and processing. For example, it was difficult for the investors in developed countries to venture into manufacturing and processing businesses in developing countries without globalization.