Lesson 6 vocabulary

3. When a company from one country (the home country) makes an investment of capital into either its own operations in another country (the host country) or into another company in the host country.
5. When a company from one country invests in a completely new business in a host country.
7. effect A nonfinancial benefit of FDI, such as a transfer of knowledge, technology, or management technique.
11. A company that has a controlling interest in a subsidiary.
13. When an individual person or a company owns enough stock to choose the company’s board, management, and policies.
14. When two companies join together for mutual gain in a collaborative business venture they own jointly.

1. When an investor directly funds the purchase, building, or improvement of a physical asset rather than just puts money into a company.
2. The country in which a company that makes an investment into a foreign company is based.
4. A transaction that combines one company with another to form a single, larger new company.
6. Action by a government to abolish or relax a law or rule concerning some aspect of business. Sometimes (but not usually) may also refer to removing or reducing barriers to trade.
8. The value of inward direct investment made by nonresident investors in another country’s economy.
9. A transaction in which one company buys another company.
10. The country in which a company that receives an investment from a foreign company is based.
12. The act of combining one company with another company to form a single, larger new company.