Answer to Question #169233 in Management for Busi

Question

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

Answer 1

Foreign Direct Investment (FDI) is the flow of capital among states globally. Notably, FDI is savings established to obtain a long-lasting interest in enterprises operating externally of the economy of the financier. For instance, McDonald’s investing in China to upsurge the number of stores in that country. In this context, a commercial enterprise ventures into a foreign economy to reinforce a part of its supply chain minus altering its business in any way.