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...Chapter outline global trends in fdi why do firms invest overseas trade barriers imperfect labor markets intangible assets vertical integration product life cycle shareholder diversification cross border mergers and acquisitions political risk summary copyright by the mcgraw hill companies inc all rights reserved foreign direct investment often involves establishment of production facilities abroad greenfield building new from ground up acquisition purchase an existing business continued several developed nations are sources outflows most world wide comes this implies that mncs domiciled these countries should have certain comparative advantages undertaking projects both developing recipient inflows some like china mexico begun to undertake albeit on a modest scale exhibit billions dollars average per year...