Analysis Of Foreign Direct Investment And Marketing Management

Question: Discuss about the Analysis Of Foreign Direct Investment And Marketing Management. Answer: Key words Foreign direct investment, marketing strategy, management of marketing operations, determinants of FDI, market access Introduction, thesis statement: Foreign direct investment is the investment that is made by an organization or an individual in a specific country related to the interests in business in the other country. Foreign direct investment takes place when an organization plans to expand its operations in a different country or acquires business assets in a foreign country. Foreign direct investment is attracted by countries which have an open economy and offers skilled workforce to the organization. Foreign direct investments can be of three types which are, vertical, horizontal and conglomerate (Blonigen and Piger 2014). Foreign direct investment can be used by any organization as an international market strategy according to which they can invest in manufacturing or setting up a new factory in a different country. The definition of FDI is also related to the acquisition of interest related to a company in another country. The different ways by which the organization can enter a new market are, construction of facilities in a new market area, acquisitions and mergers, investment in joint venture which is located in a foreign area. Foreign direct investment is made by an organization so that they can access to closed markets which are limited by trade related barriers (Papadopoulos, Hamzaoui-Essoussi and El Banna 2016). The companies can take advantage of the lower costs related to production and labour in the new market areas of the country. This type of investment is important for many industries or companies which demand innovation and access to technology. Investments are made in different countri es so that the organization can enhance its competitive position in the industry (Sheth and Sisodia 2015). Objectives and Scope of the Work The aim of the study is to present a detailed explanation of the relationship between foreign direct investment and marketing strategy of the organizations. The reasons behind the foreign direct investment steps taken by the organizations are also discussed in the study. The decisions related to the foreign direct investment of the organizations and the relationship with the marketing strategies are analysed in the study. The major goal is to focus on the steps related to foreign direct investment that are taken by the organization (Olson et al. 2018). The following questions will be answered in the study are as follows, What is the process of analysing the decision taken related to foreign direct investment taken by the organizations? What are the determinants behind marketing strategy made by organizations in the foreign countries? The conclusions that are presented in the study are of significance in the academic and practical fields. On one hand, this supports the development of the studies related to future research related to the marketing strategies developed after making investments in the foreign countries. On the other hand, the reasons that are related to the foreign investment related decisions of the organizations are also presented. This study will therefore help in analysing the foreign investments and the strategies related to marketing. References Blonigen, B.A. and Piger, J., 2014. Determinants of foreign direct investment.Canadian Journal of Economics/Revue canadienne d'conomique,47(3), pp.775-812. Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human resourcemanagement policies within the marketing organization: The impact on business and marketing strategy implementation.Industrial Marketing Management. Papadopoulos, N., Hamzaoui-Essoussi, L. and El Banna, A., 2016. Nation branding for foreign direct investment: an Integrative review and directions for research and strategy.Journal of Product Brand Management,25(7), pp.615-628. Sheth, J.N. and Sisodia, R.S., 2015.Does marketing need reform?: Fresh perspectives on the future. Routledge.