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Essay / Research Paper Abstract
This 9 page paper examines the impact and importance of direct foreign investment (DFI) within the car industry. The paper looks at the theory and illustrates this with real life examples of companies such as BMW, Toyota and Nissan. The bibliography cites 9 sources.
Page Count:
9 pages (~225 words per page)
File: TS14_TEDFIauto.rtf
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Unformatted sample text from the term paper:
change has been the development of foreign direct investment. This has enabled the transfer of knowledge to take placer as well as increase competitive forces resulting in the needs for
more efficient work practices and cost cutting to take place. Many countries that would not have been able to compete due to the high levels of investment have benefited from
direct foreign investment as seen with the Czech Republic. Other countries where there have been thriving industries that are falling behind have also benefited as seen with the UK. To
consider this we need to separate direct form indirect investment. Direct Foreign Investment is often known colloquially as DFI. This is where there is an investment made directly in a
country by a foreign government, company or other organisation. By direct investment it means that money is used to create facilities in that country these may be manufacturing facilities or
assembly facilities, or some types of physical presence, usually developing a green field site. If we look at the automotive industry in Europe it has been argued that the
market is saturated, with growth in the future projected at not greater than between 1-2% (IMAP Focus Group Report, 2002). However, other evidence also exists that indicates the growth may
not be this slow for some time. For example in the UK the market still has a great deal more potential as the trend has been o move away from
one car households to households with two or more cars with two car families increasing for 15% in 1985/6 to 22% in 2001 (The Department for Transport, 2002). For
many car manufacturers this is a mixed message especially when considering their position in the industry. Thus shows how the market has been changing. IT can be argued where
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