Explain how the below key concept are linked to this case (i.e. how the key concepts you have learned in this topic is applied in this case study?) • International investment and collaboration Foreign direct investment (FDI) is an internationalization strategy by which the firm establishes a physical presence abroad through ownership of productive assets such as capital, technology, labour, land, plant, and equipment. An international collaborative venture is a cross-border business alliance in which partnering firms pool their resources and share costs and risks of the venture. A joint venture is a form of collaboration between two or more firms that leads to minority, equal, or majority ownership. • Characteristics of foreign direct investment FDI is the most advanced and complex entry strategy and involves establishing manufacturing plants, marketing subsidiaries, or other facilities abroad. For the firm, FDI requires substantial resource commitment, local presence and operations in target countries, and the ability to access comparative advantages. It also entails greater risk compared to other entry modes. FDI is most commonly used by MNEs—large firms with extensive international operations. Services are intangible and typically cannot be exported. Services are usually location-bound and require firms to establish a foreign presence, generally through FDI. International portfolio investment is passive ownership of foreign securities such as stocks and bonds.

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