Abstract
Ever since the seminal works of Adam Smith’s (1776) The Wealth of Nations and “comparative advantage theory”, there is a long tradition of disaggregating the world into nation states and examining the global economy by reference to the interaction between them. Scholars have used this idea extensively to develop theories of international business (IB) and define key terms— such as foreign direct investment (FDI), multinational enterprise (MNE), home country and host country— necessary to advance IB scholarship.
Foreign direct investment (FDI) is generally defined as an investment undertaken by an enterprise in another enterprise in a foreign country with lasting interest. The enterprise that undertakes FDI is known as a multinational enterprise (MNE), the country from where it originates or where it has its headquarters is referred to as the home country of the MNE, and the country where FDI is undertaken is known as the host country.
Foreign direct investment (FDI) is generally defined as an investment undertaken by an enterprise in another enterprise in a foreign country with lasting interest. The enterprise that undertakes FDI is known as a multinational enterprise (MNE), the country from where it originates or where it has its headquarters is referred to as the home country of the MNE, and the country where FDI is undertaken is known as the host country.
Original language | English |
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Title of host publication | Encyclopedia of International Strategic Management |
Editors | Christian Geisler Asmussen, Niron Hashai, Dana Minbaeva |
Publisher | Edward Elgar |
Chapter | 43 |
Pages | 161-163 |
Number of pages | 3 |
ISBN (Electronic) | 9781800884045 |
ISBN (Print) | 9781800884038 |
DOIs | |
Publication status | Published - 29 Feb 2024 |