Timofeeva A.A. 2020 c
Our previous lecture : Timofeeva A.A. 2020 c
Timofeeva A.A. 2020 c
The forms of international economic relations International trade in goods and services ; The international movement of capital ; Labour migration; International exchange of knowledge ; The international currency and settlement relations. Timofeeva A.A. 2020 c The forms of international economic relations
Timofeeva A.A. 2020 c Capital
Timofeeva A.A. 2020 c
wealth, esp. money used to produce more wealth through investment or a new business money that used for investment or for starting a business value that brings in surplus value Capital is an important factor of production. It consists of those goods which are produced by the economic system and are used as inputs in the production of further goods and services. narrow broad Timofeeva A.A. 2020 c Definitions of capital
Timofeeva A.A. 2020 c
If about international movement of capital as form of international economic relations… Timofeeva A.A. 2020 c
Timofeeva A.A. 2020 c Forms of international capital movement
Forms of international capital movement Timofeeva A.A. 2020 c
Forms of international capital movement official capital enterprise capital loan capital private capital Foreign direct investment portfolio investments medium and long-term short term predominant Timofeeva A.A. 2020 c Forms of international capital movement and characteristics
Timofeeva A.A. 2020 c
Timofeeva A.A. 2020 c FDI
Timofeeva A.A. 2020 c A foreign direct investment ( FDI ) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control. FDI definition
Timofeeva A.A. 2020 c Broadly, foreign direct investment includes mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations, intra company loans In a narrow sense, foreign direct investment refers just to building new facility, and a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. FDI examples
Timofeeva A.A. 2020 c FDI TYPES
Timofeeva A.A. 2020 c Horizontal: a business expands its domestic operations to a foreign country. In this case, the business conducts the same activities but in a foreign country. For example, McDonald’s opening restaurants in Japan would be considered horizontal FDI. Vertical : a business expands into a foreign country by moving to a different level of the supply chain. In other words, a firm conducts different activities abroad but these activities are still related to the main business. Using the same example, McDonald’s could purchase a large-scale farm in Canada to produce meat for their restaurants.
Timofeeva A.A. 2020 c FDI types
Timofeeva A.A. 2020 c Platform: a business expands into a foreign country but the output from the foreign operations is exported to a third country. This is also referred to as export-platform FDI. Platform FDI commonly happens in low-cost locations inside free-trade areas. For example, if Ford purchased manufacturing plants in Ireland with the primary purpose of exporting cars to other countries in the EU Platform: FDI types
Timofeeva A.A. 2020 c FDI types
Timofeeva A.A. 2020 c FDI + and -
Timofeeva A.A. 2020 c
Timofeeva A.A. 2020 c
Timofeeva A.A. 2020 c For country Disadvantages of Foreign Direct Investment Displacement of local businesses Profit repatriation FDI advantages and disadvantages for country
Timofeeva A.A. 2020 c For company FDI advantages and disadvantages for company
Timofeeva A.A. 2020 c FDI in strategies
Timofeeva A.A. 2020 c
Timofeeva A.A. 2020 c Factors affecting FDI
Timofeeva A.A. 2020 c FDI in numbers
Stock of direct foreign investment - abroad : $33.6 trillion (31 December 2017 est.) $28.4 trillion (31 December 2016 est.) $26.2 trillion (31 December 2014 est.) The international movement of capital . . Timofeeva A.A. 2020 c Forms of international movement of capital are typically installed in countries investment and banking legislation Why attract Foreign Direct Investment Types of FDI (video: what is FDI))
Foreign direct investment, net outflows ( BoP, current US$) Timofeeva A.A. 2020 c
Timofeeva A.A. 2020 c
Timofeeva A.A. 2020 c top 15 countries and jurisdictions receiving FDI inflows: Rank Jurisdiction FDI Inflows #1 United States $275.4 billion #2 China $136.3 billion #3 Hong Kong (SAR) $104.3 billion #4 Brazil $62.7 billion #5 Singapore $62.0 billion #6 Netherlands $58.0 billion #7 France $49.8 billion #8 Australia $46.4 billion #9 Switzerland $41.0 billion #10 India $39.9 billion #11 British Virgin Islands $38.4 billion #12 Cayman Islands $37.4 billion #13 Germany $34.7 billion #14 Mexico $29.7 billion #15 Ireland $29.0 billion top 5 countries and jurisdictions receiving FDI inflows Top 1 with number
Timofeeva A.A. 2020 c Portfolio investment
Timofeeva A.A. 2020 c Types of portfolio investment Definition of FCCBs FIIs (under slide)
Timofeeva A.A. 2020 c Global Depository Receipts characteristics ( under slide)
Timofeeva A.A. 2020 c What are American Depositary Receipts (ADR)?
The forms of international economic relations International trade in goods and services ; The international movement of capital ; Labour migration; International exchange of knowledge ; The international currency and settlement relations. Timofeeva A.A. 2020 c The forms of international economic relations
