Assess the recent trends in direct foreign investment (DFI) abroad by U.S. firms. Compare the DFI...

Assess the recent trends in direct foreign investment (DFI) abroad by U.S. firms. Compare the DFI in the United Kingdom with the DFI in France in the last five years. Offer a possible reason for the large difference.

Based on the recent trends in DFI, are U.S. based MNCs pursuing opportunities in Asia? In Eastern Europe? In Latin America? Explain in detail.

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Expert Solution

From comparing the DFI in USA and France it is clear that all the companies are more intrested in investing in USA when compared to france.

USA has the large consumer base in the world. All the people of other countries are more intrested to work in USA , There is a large business environment. and more established companies. IN US there will be more transactions taking place where the business people will be either invest in existing operation or buy the existing operation.

France is also a hub for investment but when compared to US it is some what less.

US based MNC companies are mainly trying to capture markets in ASIAN and East Europian countries mainly because the there are more developing countries in this region which will create more market for these companies thus making these countries a hub for their investment. In these countries due to more unemployment and cheap labour wages US companies are investing .

Rahul Sunny answered 1 year ago

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