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Despite Its Advantages, FDI Has Been Described as an "Expensive

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Essay

Despite its advantages, FDI has been described as an "expensive" and "risky" international growth strategy. Other things being equal, why is FDI expensive and risky when compared to licensing and exporting?


Definitions:

Degree of Development

A measure of a country's economic, social, and technological progress.

Collective Behavior

The actions, thoughts, and feelings of a relatively temporary and unstructured group of people.

Norms

Shared expectations and rules that guide behavior within a group or society.

Organizational Structures

The system that outlines how certain activities are directed in order to achieve the goals of an organization, including the rules, roles, and responsibilities.

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