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


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We presented a comparative analysis of 17 countries using over 30 data series to the participants of the Annual Investment Meeting 2011 in Dubai. An event organized by the UAE Ministry of Foreign Trade to create a new global platform to discuss high growth countries investment opportunities.
Analysis done by Please contact us for additional details of the comparative analysis involving the 17 high growth countries.

Published in: Business, Economy & Finance
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The future business and economics of Foreign Direct Investment (FDI) in Emerging Markets and high growth countries

  1. 1. 1<br />The future business and economics of FDI<br />May 26, 2011<br />May 26, 2011<br />
  2. 2. May 26, 2011<br />2<br />Three shifts <br /> will shape future FDI flows:<br />Shift of global trade patterns<br />Shift from labour cost to services capabilities<br /> Shift to knowledge economies driven byglobal Talent Supply<br />How could you turn these Shifts into <br />your location advantage?<br />
  3. 3. May 26, 2011<br />3<br />The first shift<br />Bi-directional FDI&Outward<br />From: low cost manufacturing<br />To: “China overseas investments set<br />to overtake FDI within 3 years”<br />May 9, 2011 (MOFCOM) <br />
  4. 4. May 26, 2011<br />4<br />The 2ndshift<br />From:<br />Made in…<br />To➠<br />
  5. 5. May 26, 2011<br />5<br />The 2ndshift<br />To: Knowledge Economies<br />Designed and made in Brazil<br />
  6. 6. May 26, 2011<br />6<br />The 3rd shift – <br />Global talent supply<br />From: capability<br />Male dominated local workforce<br />
  7. 7. May 26, 2011<br />7<br />The 3rd shift <br />To: Knowledge economy & Entrepreneurship<br /><ul><li> mostly female &</li></ul> well educated -<br />Bornglobals<br />
  8. 8. May 26, 2011<br />8<br />How could investors identify<br />FDI investment opportunity<br />in these countries?<br />
  9. 9. May 26, 2011<br />9<br />DNA MATCH<br />Investment matching is difficult, takes time, money and effort<br />
  10. 10. May 26, 2011<br />10<br />To Match investors<br />With your Business Environment<br />Your business location needs <br />A structured Business EnvironmentDNA<br />
  11. 11. May 26, 2011<br />11<br />Your<br />Business Environment DNA<br />Defines your attractiveness<br />and suitability for specific sectors and or activity<br />Makes it easy to match your location<br />
  12. 12. 12<br />Business Environment DNA<br />Defines your attractiveness for each type of FDI investor<br />The Business Environment DNA is unique for every FDI investment!<br /> GDP per capita Labour productivity Graduates in tertiary Education<br /> Students enrolled in tertiary education R&D expenditure as a %of GDP<br /> Venture Capital and Private Equity attractiveness LabourCost<br />Unemployment rate Difficulty of hiring Rigidity of working hours<br /> Difficulty of redundancy Redundancy cost Political Stability<br />Economic freedom Corruption perception Environment performance<br /> Effective corporate tax rate Country RiskEase of doing business<br /> Business climate country Brand value Logistics performance<br /> Networked readiness Global Financial centers<br />
  13. 13. May 26, 2011<br />13<br />Business EnvironmentDNA<br />With all location factors equally weighted we compared 17 countries using 30 data series.<br />This DNA profile characterizes a modern globally integrated services and knowledge economy<br />
  14. 14. May 26, 2011<br />14<br />Business EnvironmentDNA<br />This DNA characterizes a typical knowledge economy driven by global talent supply;<br />Notice that a lot of opportunity opens up as more countries have become competitive<br />
  15. 15. May 26, 2011<br />15<br />Three shifts: Manufacturing to Capabilities to Knowledge<br />Two conclusions:<br />Locations can evolve their Business Environment to develop their aspired future economy<br />Global competition among business locations will further increase because more economies are creating suitable business environments for knowledge economies and improve global economic integration<br />One global Investment matching resource:<br /><br />
  16. 16. May 26, 2011<br />16<br />Three shifts, <br />two conclusions,<br />one recommendation:<br />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.<br />Global Arena – realizing every location’s potential:<br /><br />
  17. 17. Thankyou<br />May 26, 2011<br />17<br />