Summary of Foreign Direct Investment ■ Direct investment is the control of a company in one country by an organi- zation based in another country. Because control is difficult to define, arbitrary minimum ownership of the voting stock is used to define direct investment. ■ Governments are concerned about who controls enterprises within their...
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Case: Electrolux acquisitions Electrolux, the world’s largest manufacturer of electrical household appliances, once pioneered the marketing of vacuum cleaners. However, not all products bearing the Electrolux name have always been controlled by the Swedish firm. For example, Electrolux vacuum cleaners were independently sold and manufactured in the United States from the 1960s until 1987....
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