FDI
Analysis of advantages and disadvantages of FDI In addition to FDI, the firms are also able to expand foreign market by means of exporting and licensing. Compared with exporting and licensing, the advantages of FDI for companies 1. ... As far as the firms which mainly adopt horizontal FDI are concerned, transportation cost must normally be considered to production costs. When the firm produces a low value-to-weight ratio production such as margarine newspaper and the like, relative to exporting, FDI would only need a low transportation cost. ... In this case, the advantage of FDI over exporting is very limited.