Concepts of Foreign Direct Investment and Its Significance in Multinational Companies.

I need help creating a thesis and an outline on Concepts of Foreign Direct Investment and Its Significance in Multinational Companies. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. According to the International Monetary Fund (IMF), FDI facilitates companies to make investments with the expectation of establishing lasting relationships with the target countries. FDI was considered to be one of the major drivers of continuous growth and globalization, before the financial crisis. However, as revealed by UNCTAD in the World Investment Report of 2009, about 85 percent of the Transnational Corporations got affected by the financial crisis in 2008-09. USA tops the list of FDI inflows, but many other countries have joined this list. Nowadays, we stay in a global country. This is said because there are trade and commerce taking place among all the countries. People staying in any country can make use of products from different countries. From this very concept, the term global marketing has come up. Now, when we say that the world has become one market, we can also say that the economies of individual countries also affect the global economy, especially international trade. There is a lot of capital involved in international trade and commerce. Products and services costing billions of money are traded every day among nations in the world market. So the price of currency exchange and fluctuations also significantly affect the profit and income of the marketers.

Multinational corporations (MNCs) and FDI are the complex expressions that illustrate two separate but correlated concepts. The MNCs or multinational enterprises (MNEs) manage their production, organization, and deliver products and services in the different countries primarily through FDI. FDI acts as an entry mode for the MNCs in other countries. There are various types of entry modes that are available for the MNCs, but FDI being the easiest and the most productive one, is generally chosen by the MNCs. FDI assists the MNCs in acquiring durable participants through mergers and acquisitions or by establishing foreign branches, which implies that the firm would have a certain level of involvement and control on the management.

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