Analysis of Foreign Direct Investment and Marketing Management

This report provides a detailed analysis of the relationship between Foreign Direct Investment (FDI) and marketing management. It begins with an introduction to FDI, its types, and its role as an international market strategy, emphasizing the importance of market access and cost advantages. The report then outlines the objectives, which include explaining the connection between FDI and marketing strategies, and analyzing the decisions organizations make regarding FDI. It addresses key questions such as the process of analyzing FDI decisions and the determinants of marketing strategies in foreign countries. The conclusions drawn from this study are significant for both academic and practical fields, supporting future research and providing insights into the reasons behind FDI decisions. The report references several key studies and aims to assist in the analysis of foreign investments and related marketing strategies.

Running head: ANALYSIS OF FDI AND MARKETING MANAGEMENT
ANALYSIS OF FDI AND MARKETING MANAGEMENT
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1ANALYSIS OF FDI AND MARKETING MANAGEMENT
Title
Analysis of foreign direct investment and marketing management.
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

2ANALYSIS OF FDI AND MARKETING MANAGEMENT
demand innovation and access to technology. Investments are made in different countries 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.

3ANALYSIS OF FDI AND MARKETING MANAGEMENT
References
Blonigen, B.A. and Piger, J., 2014. Determinants of foreign direct investment. Canadian
Journal of Economics/Revue canadienne d'économique, 47(3), pp.775-812.
Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human
resource management 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.