How is FDI distinguishable from agency/distributorship relationships or franchising?

(a): Whereas agency, distributorship, and franchising operations involve non-ownership relationships with foreign businesses, FDI is a strategy involving the purchase or creation of a company to be owned in whole or in part by the investing company. This allows for the greatest level of control and potential long-term success for large companies, but capital and other start-up requirements make it potentially the most risky strategy and unsuitable for smaller businesses

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