The World of Foreign Direct Investment
Foreign direct investment (FDI) is a key element in international economic integration. FDI creates direct, stable and long-lasting links between economies. It encourages the transfer of technology and know-how between countries, and allows the host economy to promote its products more widely in international markets. FDI is also an additional source of funding for investment and, under the right policy environment, it can be an important vehicle for development.
FDI is defined as cross-border investment by a resident entity in one economy with the objective of obtaining a lasting interest in an enterprise resident in another economy. The lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise and a significant degree of influence by the direct investor on the management of the enterprise. Ownership of at least 10% of the voting power, representing the influence by the investor, is the basic criterion used. Source: http://www.oecd-ilibrary.org/sites/factbook-2013-en/04/02/01/index.html?itemId=/content/chapter/factbook-2013-34-en
DISCUSSION BOARD ASSIGNMENT:
- RESEARCH FDI on the Internet. You may select FDI in either the U.S. or abroad. For background information, the link to the OECD iLibrary has been provided: OECD iLibrary
- SELECT AN ARTICLE OR NEWS ITEM THAT DEALS WITH FDI. This is a link to an article that I found about China in Time magazine: “Hey China, Foreign Direct Investors Just Aren’t That Into You” http://time.com/13789/hey-china-foreign-investors-just-arent-that-into-you/
- COPY THE LINK TO YOUR ARTICLE into your initial post.
- INITIAL POST (150 – 175 words)
- Briefly describe your article and what it says about FDI. Make sure to include information about any trends that you find in your article. Is FDI on the rise or decline? Is it shifting from one country to another?
- Why is FDI such a good option for businesses that want to go global? What does your article or research say that supports your position?
- What do you think the future is for FDI?
- POST REPONSES TO AT LEAST 2 OF YOUR CLASSMATES. (75 – 100 words)