... firm that owns production, sales and other revenue generating assets in a number of countries. Foreign direct investment by MNE's in the establishment or acquisition of overseas raw material and components operations, production plants and sales subsidiaries because of the potentially greater cost-effectiveness and profitability in obtaining inputs and servicing markets through a direct presence in a number of locations rather than sole reliance on a single home base and imports and exports of the firm's international operations. Foreign Direct Investment (FDI): investment by a multinational company in establishing production, distribution or marketing facilities abroad. Sometimes FDI takes the form of Greenfield Investment, with new factories, warehouses or offices being constructed overseas and new staff being recruited. Alternatively, FDI can take the form of takeovers and mergers with other companies located abroad. Introduction Cross- border M&A's (mergers and acquisitions) have become an increasingly important force in international business as many countries ...

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