The future business and economics of Foreign Direct Investment (FDI) in Emerging Markets and high growth countries

1
The future business and economics of FDI
May 26, 2011
May 26, 2011

May 26, 2011
2
Three shifts
will shape future FDI flows:
Shift of global trade patterns
Shift from labour cost to services capabilities
Shift to knowledge economies driven byglobal Talent Supply
How could you turn these Shifts into
your location advantage?

May 26, 2011
3
The first shift
Bi-directional FDI&Outward
From: low cost manufacturing
To: “China overseas investments set
to overtake FDI within 3 years”
May 9, 2011 (MOFCOM)

May 26, 2011
4
The 2ndshift
From:
Made in…
To➠

May 26, 2011
5
The 2ndshift
To: Knowledge Economies
Designed and made in Brazil

May 26, 2011
6
The 3rd shift –
Global talent supply
From: capability
Male dominated local workforce

May 26, 2011
7
The 3rd shift
To: Knowledge economy & Entrepreneurship
mostly female &
well educated -
Bornglobals

May 26, 2011
8
How could investors identify
FDI investment opportunity
in these countries?

May 26, 2011
9
DNA MATCH
Investment matching is difficult, takes time, money and effort

May 26, 2011
10
To Match investors
With your Business Environment
Your business location needs
A structured Business EnvironmentDNA

May 26, 2011
11
Your
Business Environment DNA
Defines your attractiveness
and suitability for specific sectors and or activity
Makes it easy to match your location

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Business Environment DNA
Defines your attractiveness for each type of FDI investor
The Business Environment DNA is unique for every FDI investment!
GDP per capita Labour productivity Graduates in tertiary Education
Students enrolled in tertiary education R&D expenditure as a %of GDP
Venture Capital and Private Equity attractiveness LabourCost
Unemployment rate Difficulty of hiring Rigidity of working hours
Difficulty of redundancy Redundancy cost Political Stability
Economic freedom Corruption perception Environment performance
Effective corporate tax rate Country RiskEase of doing business
Business climate country Brand value Logistics performance
Networked readiness Global Financial centers

May 26, 2011
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Business EnvironmentDNA
With all location factors equally weighted we compared 17 countries using 30 data series.
This DNA profile characterizes a modern globally integrated services and knowledge economy

May 26, 2011
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Business EnvironmentDNA
This DNA characterizes a typical knowledge economy driven by global talent supply;
Notice that a lot of opportunity opens up as more countries have become competitive

May 26, 2011
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Three shifts: Manufacturing to Capabilities to Knowledge
Two conclusions:
Locations can evolve their Business Environment to develop their aspired future economy
Global competition among business locations will further increase because more economies are creating suitable business environments for knowledge economies and improve global economic integration
One global Investment matching resource:
Global-Arena.com

May 26, 2011
16
Three shifts,
two conclusions,
one recommendation:
If you are looking for investors, make it easy for them to understand your attractiveness. We help you create your unique Business Environment DNA in line with your economic development priorities and location marketing activities. You can join the FDI marketplace tomorrow better prepared and equipped to win deals.
Global Arena – realizing every location’s potential:
peter.storm@global-arena.com

Thankyou
May 26, 2011
17

The future business and economics of Foreign Direct Investment (FDI) in Emerging Markets and high growth countries

by Global-Arena.com AG on May 24, 2011

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The future business and economics of Foreign Direct Investment (FDI) in Emerging Markets and high growth countries — Presentation Transcript