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    Macasadia, Kier M. Week 8 Activity

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    Mary Joy Albandia
    The document discusses foreign direct investments and provides examples. It asks which examples represent foreign direct investments and analyzes two examples that do, including a Chinese company purchasing shares in an American hotel chain and a Turkish company building a factory in Ethiopia.

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    Macasadia, Kier M. Week 8 Activity

    Uploaded by

    Mary Joy Albandia
    17 views1 page
    The document discusses foreign direct investments and provides examples. It asks which examples represent foreign direct investments and analyzes two examples that do, including a Chinese company purchasing shares in an American hotel chain and a Turkish company building a factory in Ethiopia.

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    © © All Rights Reserved

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    DOCX, PDF, TXT or read online from Scribd

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    The document discusses foreign direct investments and provides examples. It asks which examples represent foreign direct investments and analyzes two examples that do, including a Chinese company purchasing shares in an American hotel chain and a Turkish company building a factory in Ethiopia.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    17 views1 page

    Macasadia, Kier M. Week 8 Activity

    Uploaded by

    Mary Joy Albandia
    The document discusses foreign direct investments and provides examples. It asks which examples represent foreign direct investments and analyzes two examples that do, including a Chinese company purchasing shares in an American hotel chain and a Turkish company building a factory in Ethiopia.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    MACASADIA, KIER M.

    Week 8 Activity
    Answer the following questions and submit it to our google class room on the prescribed
    due date set on the system. 

    1. Which of the following are direct foreign investments?


    1. A Chinese company pays $6.49 million for a stake in Hilton.
    2. A Russian businessman buys $44 billion on FOREX.
    3. An American company buys another American company; stockholders in
    the bought-U.S. company sell their shares on FOREX.
    4. A Turkish company builds a factory in Ethiopia and manages the factory
    as a contractor to the Turkish government.

    The following two are foreign direct investments.

    a. A Chinese company pays $6.49 million for a stake in the Hilton.

    Here we see that a Chinese company pays $6.49 million for a stake in the Hilton,
    which is a U.S based multinational company. Here, the Chinese company
    acquires $6.49 million worth share in Hilton, so it is a foreign direct investment.

    b. A Turkish company builds a factory in Ethiopia and manages the factory as a


    contractor to the Turkish government.

    Here, the Turkish company builds a factory in Ethiopia and manages the factory
    as a contractor to the Turkish government. It is a Turkish green field investment
    in Ethiopia. So, it is also a foreign direct investment.

    Options (b), and (c) are not Foreign Direct Investment.

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