Page 59 - Demo

%u062c%u0645%u064a%u0639 %u0627%u0644%u062d%u0642%u0648%u0642 %u0645%u062d%u0641%u0648%u0638%u0629 %u0640 %u0627%u0625%u0644%u0639%u062a%u062f%u0627%u0621 %u0639%u0649%u0644 %u062d%u0642 %u0627%u0645%u0644%u0624%u0644%u0641 59 %u0628%u0627%u0644%u0646%u0633%u062e %u0623%u0648 %u0627%u0644%u0637%u0628%u0627%u0639%u0629 %u064a%u0639%u0631%u0636 %u0641%u0627%u0639%u0644%u0647 %u0644%u0644%u0645%u0633%u0627%u0626%u0644%u0629 %u0627%u0644%u0642%u0627%u0646%u0648%u0646%u064a%u0629What is the Foreign Direct Investment FDIForeign direct investment involves the establishment of facilities to produce or market goods or services abroad.This direct foreign investment by multinational companies may take one of two forms:- Greenfield Investment:Includes the company's establishment of facilities in the host country from the ground up.- Cross-Border AcquisitionIncludes the purchase or acquisition of companies or facilities that already exist in the host country.What is better for firms and host governments, green investment or acquisitions?While most firms prefer to acquire existing facilities and assets, host country governments tend to favor green investments.%uf0b7 Companies prefer the acquisitions of existing companies because:- Acquisitions save the company the time and effort required to build assets from the ground up.- Acquiring existing assets is less risky and faster than building these assets from the ground up.%uf0b7 Host governments prefer green investment because establishing new projects without taking over existing projects achieves the following benefits for the country:- It solves the country's problems related to unemployment and technological shortages.- It contributes to the country's Gross Domestic Product GDP rate.Given the importance of green investment for the country, host governments may provide incentives to encourage the forms of green investment and impose barriers to acquisitions 22.22 --Eun, C. S., & Resnick, B. G. (2012). International financial, edition Six, McGraw Hill.