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The motives for foreign direct investment can be categorized into three main types.
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Resource -seeking, market -seeking, and efficiency -seeking.
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Resource -seeking is when a company invests in a foreign country to gain access to a specific resource that are more abundant or cheaper in that country.
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These include things like oil or minerals or human resources like cheap labor or technological resources.
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In market seeking, this is when a company invests in a foreign country to gain access to a larger or new market.
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Maybe the company's domestic market is saturated or a foreign market has higher growth potential.
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For efficiency seeking, the company could be trying to increase its efficiency.
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They could do this by taking advantage of lower production costs, more favorable tax regimes, or more efficient supply chains in the foreign country.
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Some possible benefits to the host nation would be economic growth by providing capital for investment, creating jobs, and increasing productivity.
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Technology transfer...