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This book shares proven, “on-the-ground” insights for building “Base of the Pyramid” businesses that really are sustainable and green, will help alleviate social ills, and can scale to significant size and profitability. Its “second-generation” techniques reflect crucial lessons learned by “BoP” pioneers: lessons that dramatically increase the likelihood of success.
This technical note briefly introduces the reader to various Foreign Direct Investment related concepts and firm-level considerations. As discussed throughout the paper, a decision to participate in FDI can occur for various reasons. Some multinationals are motivated to invest abroad in order to sell to new markets. Others might view FDI as a way to access global natural resources. Most nations welcome investments from foreigners and see the funds as an opportunity to increase economic growth. Yet, other nations prefer to limit the influence of foreign firms and push domestic politicians to implement protectionism policies. One thing is clear, whether one is a strong supporter of FDI or a staunch critic, it is essential to have an understanding of this important business topic.
You and your roommate plan on launching a business out of your two-bedroom apartment. Will this business be profitable? the exercise examines a variety of dilemmas a business faces, with a main focus on analyzing the impact of the production process on the success of the business.
Whether nations benefit from trade is a question that has been passionately debated throughout history. The theory of comparative advantage is one of the more useful, yet frequently misunderstood, topics in economics and public policy. This note introduces the theory of comparative advantage. A companion note, "Beyond Comparative Advantage: Theories of Strategic Trade" (WDI case # 1-428-935) introduces modern approaches, including game theory and strategic trade.