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Review of World Investment Report

MGX5966
International business theory and practice
Lecture time: 18:00-19:30, Tuesday
Lecturer: Quamrul Alam
Tutorial time: 12:00-13:30, Tuesday
Tutor: Sharif Rasel
Due date: 09/09/2014

Students: RUIHAN FAN (26297701)

Review of World Investment Report
1. Introduction
This review is going to talk about the recent trends discussed in the WIR 2014, the reason that developing and emerging economies have attracted FDI, and why will SDGs have a significant resource implication for future investment decisions of MNEs.

2. The recent trends discussed in the WIR 2014
1. Global FDI flows

Global FDI flows increased by 9 percent in 2013 to $1.45 trillion, up from $1.33 trillion in 2012. Although the share of developed economies in total global FDI flows remained low, it is expected to rise over the next three years to 52 per cent.

Global inward FDI stock rose by 9 per cent, reaching $25.5 trillion. It reflects the rise of FDI inflows and strong performance of the stock markets in many parts of the world.

2. FDI inflows

FDI inflows rose 9 percent in 2013 revealed a moderate pickup in global economic growth and some large cross-border M&A transactions. The increase of FDI inflows was widespread in all major economic groupings − developed, developing, and transition economies. Developed countries’ FDI inflows grew by 9 percent, reaching $566 billion. Developing economies reached a new high of $778 billion, accounting for 54 percent of global inflows.

Developing Asia remained the world’s largest recipient region of FDI flows, and China remained the recipient of the second largest flows in the world. In 2013, APEC absorbed half of global flows, similar to the G-20, while the BRICS received more than one fifth. Besides, FDI flows to Latin America and the Caribbean registered a 14 percent increase.

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