...Analysis of Foreign Direct Investments of North America Kristin Daughdril & William Cassidy Business Administration 418 Abstract Foreign Direct Investment (FDI) is an investment involving a long-term relationship and reflecting a lasting interest in and control by a resident entity in one economy of an enterprise resident in a different economy (UNCTAD). There are two types of FDI, inflows and outflows, which can be used to help determine the investment strategies and economies of countries engaged in FDI. North America has been the source of nearly one-half of all investment and almost three-quarters of the jobs created throughout the globe (Huggins, 442). North America is probably the most important continent when it comes to dealing with FDI. The three main countries of North America, the United States, Canada, and Mexico, all rank in the top 15 of world economies, proving them to be desirable partners in FDI transactions. The trends of FDI discussed in this report will be unparalleled to this information and can lead to some predictions on how future trends of the countries of North America will continue to be superior to that of the other continents of the world. Keywords: Foreign Direct Investment, FDI Inflow, FDI Outflow Foreign Direct Investment is investment of a company located in a different country either by buying a company in the country or expanding its business into the country. FDI can be done for many purposes. Companies may have tax incentives abroad...
Words: 1779 - Pages: 8
...Business Administration Course: International Investment & Trade Instructors: Nadolska & Verwaal RSM Erasmus University Strategy & Business Environment =>? McGraw-Hill/Irwin McGraw−Hill Primis ISBN−10: 0−39−089559−8 ISBN−13: 978−0−39−089559−2 Text: International Business: The Challenge of Global Competition, 11th Edition Ball−McCulloch−Geringer−Minor−McNett International Management: Text & Cases, 5/e Beamish−Morrison−Inkpen−Rosenzweig Global Business Today, First Canadian Edition Hill−McKaig Harvard Business School Cases — General Management Harvard Business School Cases — International Business Richard Ivey School of Business — The University of Western Ontario International Management Phatak−Bhagat−Kashlak Taking Sides: Issues in Management, Second Edition Street−Street This book was printed on recycled paper. Business Administration http://www.primisonline.com Copyright ©2008 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content...
Words: 5437 - Pages: 22
...Explain the term ‘investment’ and analyse two possible economic benefits for the UK when it is investing overseas. Investment is spending by firms on buildings, machinery and improving the skills of the labour force. Investment is an injection into the economy, which may cause a multiplier effect to operate so that the increase in national income is likely to be larger than the initial injection. This diagram shows how an increase in investment overseas means there wil be foregn direct investment so there will be a huge flow in capital, which will allow the economy to benefit with exchange of supply and demand. Advantages Of Foreign Direct Investment There is a huge inflow in capital, technology and openings in employment. The economy benefits with exchange of supply and demand in an international market. Foreign direct investment increases the employment in the trading countries which is a significant benefit. Imports and exports increase in both the trading countries. The quality of the product increases with a free flow of international trade. There is widespread technological advancement. There is a spill over effect of technology and quality in the existing economies. Focus on research and development increase The profits gained by foreign direct investment increases re-investment opportunities in the developing economy. Low transportation costs Avoiding trade restriction to expand into foreign markets Tax benefits Same currency converters...
Words: 519 - Pages: 3
...INTERNATIONAL TRADE & INVESTMENT Prof. Dr. Natalia Ribberink World Trade Center, Seoul, South Korea (Picture: Ribberink) INTERNATIONAL TRADE & INVESTMENT Preliminary Notes World Trade Center, Seoul, South Korea (Picture: Ribberink) Preliminary notes • Combination of lecture, seminar, group work and other forms of learning as appropriate; • Grading: working paper 60%, case studies 40% • Communication: natalia.ribberink@haw-hamburg.de © Prof. Dr. Natalia Ribberink 3 Agenda Chapter 1: Chapter 2: Chapter 3: Chapter 4: Chapter 5: International trade and investment environment International trade policy and instruments Forms of international trade FDI theories, patterns and forms FDI policy instruments For details s. Syllabus (will be provided in class on Nov 10, 2015). © Prof. Dr. Natalia Ribberink 4 Message icons Further reading Question for group discussion Case study Int. Trade & Investment Vocabulary © Prof. Dr. Natalia Ribberink 5 Online sources: AuslandsGeschäftsAbsicherung des Bundes: www.agaportal.de Außenwirtschaftsportal: www.ixpos.de Berne Union: www.berneunion.org.uk Kreditanstalt für Wiederaufbau: www.kfw.de OECD: www.oecd.org Statistisches Bundesamt Deutschland: www.destatis.de The Economist: www.economist.com UNCTAD: www.unctad.org World Trade Organisation: www.wto.org © Prof. Dr. Natalia Ribberink 6 CHAPTER 1: International trade & investment environment Westside Market...
Words: 5898 - Pages: 24
...What is International Business? International business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations. Learning Objectives To understand the history and impact of international business. To learn the definition of international business. To recognize the growth of global linkages today. To understand the U.S. position in world trade and the impact international business has on the United States. To appreciate the opportunities and challenges offered by international business. Introduction: International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics,and transportation) that take place between two or more nations. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons. It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc. A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country. An MNE is often called...
Words: 3329 - Pages: 14
...THEORIES OF THE LOCATION OF FOREIGN DIRECT INVESTMENT 1. INTRODUCTION The movement of capital as foreign direct investment (FDI) that has been seen in the world, and their concentrations at international and regional level has led, for decades now, to the emergence of various theories that intend to explain and justify why that motivate and manage to be determining what factors to establish the place in which it was made. The main ideas of these approaches are discussed briefly herein in order to elaborate on this phenomenon, although there is no agreed explanation regarding the causes of the location of this type of investment and of the features that must meet the destination to attract this level of investment. FDI globally decreased 18% in 20121, reaching USD 1.35 billion. The fragile state of the global economy and the uncertain situation in politics were the main causes. Considering the estimates of the United Nations Conference on Trade and Development (UNCTAD), by the end of the year 2013 FDI will have reached a level close to the 2012 level. With the gradual improvement in macroeconomic conditions globally will increase investor confidence in the medium term, "transnational corporations (TNCs) could convert their record levels of cash holdings in new investments. FDI flows could then reach the level of 1.6 billion dollars in 2014 and 1.8 billion in 2015 "(see Figure 1), although the agency warns that there is a risk that a decline in FDI share...
Words: 2810 - Pages: 12
...Managing in International Economies Individual assignment Submitted by Student Name: SHI YONGQIANG Annotated Bibliographies 1. Christina Öberg , (2014),"Customer relationship challenges following international acquisitions", International Marketing Review, Vol. 31 Iss 3 pp. 259 - 282 2. Rajah Rasiah Peter Gammeltoft Yang Jiang, (2010),"Home government policies for outward FDI from emerging economies: lessons from Asia", International Journal of Emerging Markets, Vol. 5 Iss 3/4 pp. 333- 357 3. Hamid Yeganeh, (2011),"Culture and international trade: evidence from Canada", International Journal of Commerce and Management, Vol. 21 Iss 4 pp. 381 – 393 Table of Content Annotated Bibliographies 2 1.0 Customer relationship challenges following international acquisitions 5 1.1Citation 5 1.2 Introduction 5 1.3Aims and Research methodology 5 1.4 Scope – Analysis, Findings and Results 6 1.5 Usefulness 6 1.6 Limitation 7 1.7 Challenges and Critiques 7 1.8 Conclusion 8 1.9 Reflection 8 2.0 Home government policies for outward FDI from emerging economies: lessons from Asia 9 2.1 Citation 9 2.2 Introduction 9 2.3 Aims and Research Methods 9 2.4 Scope – Analysis, Findings and Results 10 2.5 Usefulness 10 2.6 Limitation 11 2.7 Critiques and Challenges 11 2.8 Conclusion 11 2.9 Reflection 12 3.0 Culture and international trade: evidence from Canada 13 3.1 Citation 13 3.2 Introduction 13 3.3 Aims and Research Methods 13 3.4...
Words: 2962 - Pages: 12
...INTRODUCTION 1.1 BACKGROUND 1.2 OBJECTIVES 2 2 3 4 4 5 5 5 6 7 11 12 CHAPTER TWO - THEORETICAL ASPECTS 2.1 2.2 2.3 2.4 2.5 2.6 2.7 INTERNATIONAL TRADE – EXPORT & IMPORT LICENSING FRANCHISING JOINT VENTURES ACQUISITIONS FOREIGN SUBSIDIARIES FDI IN INTERNATIONAL BUSINESS CHAPTER THREE – BANGLADESH PERSEPECTIVE 3.1 INTERNATIONAL BUSINESS MODES USED IN BANGLADESH CHAPTER FOUR - CONCLUDING REMARKS 4.1 CONCLUDING REMARKS REFERENCES © Ferdous Mahmud Shaon, Student ID: 12164052 1|P age CHAPTER 1 - INTRODUCTION BACKGROUND If we spend a day looking around us, the importance of international business will become very obvious. We don't have to look far to see this. For example, if we have a mobile phone or MP3 player, then we can quickly find out at where they were made. What about the computer that was used to prepare this article, or the printer that was used for printing? When we eat, how much of the food we consume was actually produced in Bangladesh? In short, our lives and living standards are heavily influenced by the amount of international business and trades, we conduct with the rest of the world. Due to remarkable initiatives in regard of financial and trade liberalization over the last three decades, there has been remarkable increase in the volume of international business and trades. In Bangladesh, the policy of trade liberalization & free market economy in the 1980s has created both challenges and opportunities for our economy. Bangladesh continues to...
Words: 3836 - Pages: 16
...A. consumption and investment and government expenditure. B. consumption and government expenditure and net exports. C. consumption and net exports and government expenditure. D. consumption less imports. 3. If the United States imports more than it exports, then this means that A. the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus. B. the demand for dollars is likely to exceed the supply in the foreign exchange market, ceteris paribus. C. the U.S. dollar would be under pressure to appreciate against other currencies. D. both b) and c) are correct 4. Balance of payments A. is defined as the statistical record of a country's international transactions over a certain period of time presented in the form of a double-entry bookkeeping. B. provides detailed information concerning the demand and supply of a country's currency. C. can be used to evaluate the performance of a country in international economic competition. D. all of the above 5. If a country is grappling with a major balance-of-payment difficulty, it may not be able to expand imports from the outside world. Instead, the country may be tempted to A. impose measures to restrict imports. B. impose measures to discourage capital outflows. C. Both a) and b) D. None of the above 6. If the United States imports more than it exports, then A. the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris...
Words: 11412 - Pages: 46
...RESEARCH IN BUSINESS EFFECT OF TRADE DEFICIT ON THE ECONOMY OF PAKISTAN Mohsin Abbas Superior University, Lahore, Pakistan Hassan Raza (Corresponding author) University of Lahore, Lahore, Pakistan Abstract This study has conducted to find the effects of trade deficit on the economy of Pakistan in which trade deficit is the independent and gross domestic product, foreign direct investment exchange rate are the dependent variables. Depending on the availability of data we have selected the longest possible sample period to avoid the small sample bias. A sample period of 24 years has been selected for this study for the period of 1988-2011 with annual frequency. We use histogram, scatter plot matrix and the correlations ordinary least square method of regression has been used for the analysis.Histogramof exchange rate show rupees value against U.S dollar are continuously decrease. FDI is also not good, Gross domestic product (GDP) of the Pakistan is also very low trade,In histogram also represent the trade volume (TV) in which imports of Pakistan is very high while export is low. Scatter plot show the positive relationship dependent and independent variables except trade volume. So its result shows if the government working on these variables then trade deficit should automatically decrease like 2003 and 2004 in which our export are more as compare to import .correlation coefficient of trade deficit with gross domestic product, foreign direct investment, exchange rate has shown the...
Words: 14436 - Pages: 58
...name has a variety of meanings, which are: - We are all Forever Alone, that's the reason why you always should look for us when you need somebody to love because we are Forever and Fully Available - We are also Fascinatingly Adorable, Fantastically Amazing b.Connection to the subject: - The name F.A refers to Financial/Foreign Aid, a very important part of International Economics, involved in International Trade as well as International Movements of Factors (which are, in this case, International Investment and International Technology Transfer), when capital and other resources flow to the less developed countries for help. 2. Definition of FDI: There are two concepts of FDI and two matching ways of measuring it. One is that FDI is a particular form of the flow of capital across international boundaries from home countries to host countries. These flows give rise to a particular form of international assets for the home countries, specifically, the value of holdings in entities, typically corporations, controlled by a home country resident or in which a home country resident holds a certain share of the voting rights. The other concept of direct investment is that it is a set of economic activities or operations carried out in a host country by firms controlled or partly controlled by firms in some other (home) country. These activities are, for example, production, employment, sales, the purchase and use of intermediate goods...
Words: 3981 - Pages: 16
...Terry 10/8/2012 Wk 7Assignment Globalization & Regionalization Globalization is international integration of cultures, people, products, beliefs, and much more. Globalization makes goods and services available to locations that originally wouldn’t have them. Some of my favorite restaurants are Brazilian Steakhouses like Texas de Brazil and Fogo de Ciao. These restaurants would not be offered in Denver Colorado without globalization. Globalization has increased greatly over the past century due to advancements in technology, particularly in transportation and knowledge sharing (internet). These technologies have ingrained globalization in the modern era. Regionalization is the economic integration of countries. Some good examples of these are the North Atlantic Free Trade Organization (NAFTA) and the European Union (EU). Both of these agreements take countries that are in similar regions and in certain economic ways. All countries in the EU have the same currency which creates certain benefits but has also created economic disaster for many countries involved. The goal of regionalization is to benefit all countries involved and become stronger globally as a whole. These two forces have had tremendous impact on the small African nation of Lesotho. Foreign influences have shaped Lesotho throughout history and currently determine their economic factors today. Most recently trade agreements have made Lesotho dependent on Chinese manufacturers’ (major imports) and major...
Words: 6253 - Pages: 26
...Paul XXXXXX XXXXXXXXX University International Financial Markets: Foreign Direct Investment FIN630 – Global Financial Management March 17, 2011 Foreign Direct Investment: Vernon’s product life-cycle theory Raymond Vernon’s theory was different than the modern day theories of the 1960’s. Before Vernon, economists thought the reason a country traded with another was because of some advantage it had over the other for producing a product. The advantage was thought to be mostly related to cost; a country could produce it cheaper. Vernon did not agree with this way of thinking. Raymond Vernon believed that products have a life cycle. His theory put emphasis on invention and new products. He believed that most trade came from manufactured products especially products saved consumers time and effort from work. Vernon believed that more advanced or stronger economic countries would focus on developing new products and inventions because those economies would have the economic structure to support research and development (Katsioloudes & Hadjidakis, 2007). Vernon believed that countries varied in economic development and they traded with each other not because they were superior but because it was a good opportunity for both. For example, during the 1950’s and 60’s the United States was a much more developed economic leader than Japan; however, trade between the two countries would not come from the U.S. having an advantage over Japan. It came about because it...
Words: 1245 - Pages: 5
...be able to turn the existing trade deficit in its favour. Through improvement in communications, Pakistan can thus effectively integrate its domestic market as well as explore landlocked neighbouring markets through exports. Completion of CPEC is likely to improve Pakistan’s economic, commercial, and geostrategic environment. As the proposed Chinese investment more than doubles all foreign direct investment in Pakistan since 2008, it will attract international investors in Pakistan. This will help to improve the perceived external image of the country, an image that is not always in line with current situations and tends to be more negative than merited by actual conditions and one that causes a psychological obstacle to the flows of foreign...
Words: 1319 - Pages: 6
...The definition of foreign investment 3 2. Dispute settlement mechanisms of investment agreements 6 3. International Centre for Settlement of Investment Disputes 9 3.1. General provisions 9 3.2. Procedural rules under the Washington Convention 11 Jurisdiction 12 The procedure 14 The advantages of ICSID procedure 17 3.3. Important cases of ICSID arbitration 19 Occidental Petroleum Corporation v the Republic of Ecuador case 19 Phoenix Action Ltd. v. Czech Republic case 21 Vigotop Limited v Hungary case 23 3.4. The Role of Precedent in ICSID Arbitration 25 4. Multilateral Investment Guarantee Agency 28 4.1. General Provisions 28 4.2. MIGA and the settlement of investment disputes 31 Interpretation and Application of the Convention 32 Disputes between the Agency and Members 32 5. Conclusion 35 Bibliography 38 Introduction In my thesis, my topic is foreign investment and the relating regulation system, aimed at increasing economics in the area of international relations. First, I would like to present the definition of foreign investment, since in the past decade, investment, especially foreign direct investment has come to play a major role in the internationalization of business. The most profound effect has been seen in developing countries, where foreign direct investment flows have highly increased. Foreign direct investment is a key element in international economic integration...
Words: 1099 - Pages: 5
