Академический Документы
Профессиональный Документы
Культура Документы
Dir ect
In vestment
By
Amo s W ang'omb e
Hu W ei
Li X ia o
Mar cel Gw angw aá 1
Def inati on of FDI
Foreign direct investment (FDI)
occurs when an investor based
in one country (the home
country) acquires an asset in
another country ( the host
country) wi th the inte nt to
manage the asset.
2
Types of FDI
Malaysia 8903
2900
Wh y FDI a nd
not fi nancial
Loans ??? ?? ?
8
Th e determin ants o f
FDI
• Ow ner ship
advantages
• Arise from economies of scale
with respect to intangible
assets such a skilled
management and know-how by 9
Th e determ in ants o f
FDI
• present si tuati on
„Monopol isst ic &
Oligopol ist ic Market“
( They have
som e uni que pr oducti on knowledge
or manager ial ski ll that coul d be
eas ily and prof itabl y be uti lized
abroad and ov er which the
corporati on wants to rem ai n contr ol) .
13
Macro-level explanations
•Repatriation of Profits
•Large economy
•Market size
21
Mu ltilater al Agre eme nt on
Inves tment
Background
There is currently no comprehensive
multilateral legal framework that
provides investment disciplines.
The MAI is to remedy the supposed
weaknesses of the World Trade
Organization (WTO) agreement with
respect to investment issues.
22
Mu ltilater al Agre ement on
In vest ment
23
Mu ltilater al Agre eme nt on
Inves tment
Overview
contents of the current draft of MAI
1. Renew the definition of FDI(broad definiton
27
Mu ltilater al Agre ement on
Invest ment
Criticism
• unrestricted freedoms for foreign investors and
transnational corporations.
30
1996 WTO S ingapor e
Mi nis ter ial meeting
• Increased Productive
efficiency due to
competition from
multinational subsidiaries
32
Adva nta ge s of
FDI
• Improvement in the quality
of the factors of production
33
Adva nta ge s of
FDI
• Faster growth of output
and employment
• Consumer Benefits
Price
Quality
Varieties 34
Adva nta ge s of
FDI
• Increase in Exports
35
Cost s of F DI
• Negative effects on the
balance of payments.
Print TV Entertainments
&
•Count ry‘ s Soverei gnty
is at stake. 40
How can FDI be better applied
to sustainable developments?
41
Rec omme nda tio
ns
•Com pa re th e P ro
and t he Co ns
•Dev el op
str at eg ies th at
tar ge ts th e rig ht 42
Rec omme nda tio
ns
– Use of Envirome nt al 46
Wish u a merry x-mas and a
happy new year!!!
47