The Impact of Foreign Direct Investment
Introduction (Sasimas)
Foreign direct investment (FDI) is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased. The Organization of Economic Cooperation and Development (OECD) defines control as owning 10% or more of the business. Businesses that make foreign direct investments are often called multinational corporations (MNCs) or multinational enterprises (MNEs). A MNE may make a direct investment by creating a new foreign enterprise, which is called a greenfield investment, or by the acquisition of a foreign firm, either called an acquisition or brownfield investment (Grimsley, 2003).
The structure of this report consist of seven parts. The section one is introduction and report structure. In section two is definition of globalization. Section three refer to the theory of Hoftstede Dimensions. We analyze Between Thailand VS. China. Section four is the impact of foreign direct investment(FDI). In section five is recommendation about strategies. Section six is conclusion. And the final section is the reference.
Definition of Globalization(Woramon)
Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world (Valley, 2015).
Globalization is a widely and somewhat loosely used term, intended to describe the recent and rapid process of intercontinental economic, social, and political integration. This worldwide integration allows people to communicate, travel, and invest internationally, and helps companies market their produces widely, acquire capital and human and material resources more efficiently, share advanced technology, and enjoy economics of scale(Wells et al.,2001).