Foreign Direct

Investment
The direct investment of a company incorporated in
a foreign country to the host country.
Key features of the Investment Climate

Access to finance and International Integration

Investors are most-likely to invest in projects where they do not face credit
constraints unrelated to their own performance.

Governance
The government and the body that governs the interactions between the
government and businesses determine the burden that the firm face in complying
with government regulations.

Infrastructure
The better the infrastructure of the host country, the more attractive it is to
foreign investors.

Skilled Labor Force

The knowledge infrastructure and the level of human development of the host
country.

Anything that makes your
attempt to buy an asset more
risky can have a material
effect on the amount of
instrument we get.
Nouriel Roubini
Key features of the Investment Climate

Macroeconomic Factors
Gross Domestic Product growth, inflation rate, level of industrialization etc.

Political Stability
Investors are more attracted to host countries which have stable business
and political risks.

Technological Factor
The level of technological innovations in a host country attracts investors
because this would mean they only need to add complementary innovations of
their own.
Privatization
A stage or course of action of transferring in whole or in
part the ownership of a business enterprise , agency or
public service from a public sector to a private sector
 ACCOUNTABILITY
CIVIL-LIBERTY CONCERNS
CORRUPTION
TINTED PURPOSE
IMPROVEMENT
Pro Privatization EMPLOYMENT
Key Points PERFORMANCE
POLITICAL INFLUENCE
PROFITS
SECURITY
SPECIALIZATION
 ACCOUNTABILITY
CAPITAL
CIVIL-LIBERTY CONCERS
CONCENTRATION OF WEALTH
CORRUPTION
CUTS IN ESSENTIAL SERVICES
DOWNSIZING
GOALS
Anti Privatization IMPROVEMENTS
JOB LOSS
Key Points LACK OF MARKET DISCIPLINE
PERFORMANCE
POLITICAL INFLUENCE
PRIVATIZATION AND POVERTY
PROFIT