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Foreign Direct Investment Networks

Foreign direct investment (FDI) networks are social structures made up of individuals, organizations, associations, and institutions that influence the extent and direction of FDI. Networks in sociology and other disciplines are characterized as flexible, fluid, and dynamic groups that operate on the basis of reciprocity, group membership, and standard-setting practices. Although FDIs are huge amounts of capital that develop a productive sector of an economy to manufacture a product, extract resources, or render a service, the owners of capital become controlling actors of a particular country’s asset. Factories, mines, land, water, and other national, patrimonial assets become targets for FDI in various sectors of the economy. To estimate the profitability and create a stratagem to capture the market share, investment networks become the nodes that ...

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