普格尔《国际贸易（第17版）》 英文手册Pugel_17e_chap015_IM.docxVIP

PAGE PAGE 117 ? 2016 by McGraw-Hill Education. ?This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. ?This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.? Chapter 15 Multinationals and Migration: International Factor Movements Overview This chapter provides a survey of the economics of foreign direct investment (FDI) and the economics of labor migration. Foreign direct investment is a flow of funding provided by an investor (usually a firm) to establish or acquire a foreign company or to finance an existing foreign company that the investor owns. Ownership is important because the investor has or acquires the power to have a substantial influence on the management of the foreign company. The share of the equity of the foreign company that the investor must own to have substantial influence on management is probably less than 50 percent. The standard (arbitrary) minimum amount used by most countries to define FDI is 10 percent of the equity of the foreign company. (FDI may also refer to the stock of such investments in existence at a point in time.) A multinational enterprise (MNE) is a firm that owns and controls operations in more than one country. Thus, FDI is a way that the parent company of the MNE can finance its foreign affiliates. However, an MNE is more than just a way to move financial capital between countries. The foreign affiliate (subsidiary or branch) often receives managerial skills and methods, technology and trade secrets, marketing capabilities and brand names, and instructions about business practices from its parent company. Often much of the financing of the affiliate is raised locally, perhaps to reduce exposure to exchange rate risk or to the risk of expropriation by the host-country government. Industrialized countries are the source of most FDI, and most FDI goes into industrialized countries (altho