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Direct Foreign Real Estate Investment

Canada Real Estate Foreign direct investment (FDI) is referred to throughout the book and it is the focus of chapters 11 and 15. As Ian Mac Lachlan pointed out to me recently, however, no explicit definition of FDI is offered. Simply put, and slightly paraphrasing Dunning's (1988: 1) words, Canada Real Estate Foreign direct investment comprises activities that are controlled and organized by firms (or groups of firms) outside of the nation in which they are headquartered and where their principal decision makers are located. In the context of the manufacturing sector, Canada real estate foreign direct investment is conventionally thought of in terms of branch plant or subsidiary company operations that are controlled by parent companies based in another country.

Canada Real Estate Foreign direct investment has increased tenfold over the last 20 years (see graph). These kinds of investment bring private overseas funds into country for investments in manufacturing (for example, General Motors building an auto factory in the Philippines). Canada Real Estate Foreign direct investment can bring impressive growth, as in China's coastal provinces, but also instability and economic distress, as during the 1997-98 Asian financial crises.

Governments of many poor countries see foreign capital as a way for economic growth, and they have taken steps to attract it.These steps are inclusive of minimizing business regulation and weakening codes for labor, health, and the environment.

Canada Real Estate Foreign direct investment plays an extraordinary and growing role in global business. It can provide a firm with new markets and also with new marketing channels, cheaper production facilities, access to new technology, skills, product and financing. For the host country or the Direct foreign firm which receives the investment, it can provide a source of new technologies, capital, processes, organizational, product technologies and management skills, and as such can provide a strong impetus to the economic development.

Canada Real Estate Foreign direct investment, in its classic definition, is defined as a company from one country making a physical investment into building a factory in another country. The direct foreign investment in buildings, machinery and equipment is in contrast with making a portfolio investment that is considered an indirect investment. In recent years, given rapid growth and change in global investment styles, the definition has been broadened to include the acquisition of a lasting management interest in a company or enterprise outside the investment firm’s home country.