International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
In their search for sustainable development and endurable development strategies, neo-colonial economies of the Third World and Africa in particular gloss over massive corruption in public office and sit-tight syndrome of leaders. Rather, since attaining independence in the 1950s and 60s, their leaders have tinkered with several development strategies drawn from both the capitalists and socialist models. In all of these, development has remained a far cry as a result of many challenges faced by these economies. Strategies ranging from indigenization to export promotion and import substitution of the 1960s, to privatization and structural adjustment of the 1980s and Foreign Direct Investment of the 1990s have been experimented with varying degrees of success. Little has been done in the area of checking financial corruption and abuse of office by public office holders, building of strong institutions from which economic oriented strategies can be rooted and checking tenure elongation by leaders of states. The results have been huge failures and frustration on the part of development partners. This paper has attempted a survey approach to Foreign Direct Investment as a way out of structural imbalances of neo-colonial economies. Basing this examination on Nigeria, findings have shown that Foreign Direct Investment can work for development only if host government regulate the activities of foreign investors and also create enabling environment for investment to yield expected results.
The document provides an overview of international business, including:
1. It defines international business as commercial transactions between two countries and explains why companies engage in international business, such as expanding sales, acquiring resources, diversifying sources of sales and supplies, and minimizing competitive risk.
2. Recent growth in international business is due to expansion of technology, liberalization of cross-border movements, development of supporting services, and increased global competition.
3. The main modes of international business are merchandise exports and imports, service exports and imports, and foreign direct investment, which occurs when an investor gains a controlling interest in a foreign company.
Relation Between Inflow Of FDI and The Development Of India's EconomyIJTEMT
1) The document examines the relationship between foreign direct investment (FDI) inflows and economic development in India. It discusses how FDI has increased in India since economic reforms began in 1991, with sectors like services, telecommunications and software attracting significant investment.
2) The paper aims to analyze the impact of FDI on India's GDP as a measure of economic development. It also examines how economic reforms have affected FDI in India and constraints to increasing FDI.
3) The document provides context on the growth of FDI globally and its potential benefits, like increasing employment, productivity, and technology transfer. However, it notes that some studies have struggled to find a definitive causal link between FDI and economic
Foreign Direct Investment and Development of Manufacturing Sector in Nigeria ...inventionjournals
This study is centered on foreign direct investment and development of manufacturing sector from 1990-2014. Political unrest, epileptic power supply, militancy of Niger Delta region, unstable exchange rate and insurgency of the North east of Nigeria was identified as the hindrances to manufacturing sector. The work is anchored on mercantilist trade theory of Jean baptiste Colbert and Thomas hobbes. Secondary data was sourced from Central bank of Nigeria Statistical bulletin, CBN occasional paper number 32 on the dynamics of inflation in Nigeria. Diagnostic survey research pattern was applied for this study. Data obtained were analyzed using an ordinary least square method by the use of time series and seasonal variations. The results shows that FDI is growth enhancing and it equips and stabilizes exchange rate and reduces dependency on imported finished products, enhances profitability thus leads to survival of manufacturing sector. Recommendations include; policy makers should realize the essence of stable exchange rate so as to drive maximum benefit from investment. Government expenditure should encourage and promote investment to boost the manufacturing industries
Does Macroeconomic factors Impact on Foreign Direct Investment in emerging ec...AI Publications
Foreign direct investment is essential for economic growth of a country. It acts as a promoter for the economic development of a country. Keeping this in mind, the objective of this study is to determine the effect of macroeconomic variables such as interest rate, real exchange rate,inflation rate and stock market on foreign direct investment in Pakistan. For this purpose,study used the authentic annual data for the period of 27 years i.e. from 1990-2016. We are use for analysis E-View software, The empirical analysis involved using the ADF test to check the stationary of the data.Results revealed that interest rate and exchange rate have significant negative effect on FDI and stock market index has negative and unsignificant effect on FDI while inflation rate has positive and significant effect on FDI.
This document provides information on an International Finance course module, including:
- The instructor's contact information, course details, and an overview of the importance of international finance.
- Course objectives, distribution of marks, and 4 assignments focused on analyzing currency and foreign investment trends.
- 2 activities for students to discuss currencies and international stock exchanges.
- An outline of 22 planned lectures, their topics, and how they relate to the assignments. Key topics include foreign exchange markets, exposure, international trade/payments, monetary systems, and institutions.
- The goal is to equip students with international financial practices and provide insights into foreign exchange, markets, and hedging techniques used in global business.
The document provides an overview of the legal framework for growing international finance in India. It discusses several key acts and policies:
- The Foreign Exchange Regulation Act (FERA) of 1973 which imposed strict exchange controls was replaced by the Foreign Exchange Management Act (FEMA) of 1999 to liberalize controls.
- FEMA recognizes the distinction between current and capital account transactions and seeks to facilitate external trade and payments.
- The Prevention of Money Laundering Act (PMLA) of 2002 defines money laundering and outlines penalties. It established the Financial Intelligence Unit - India to analyze suspicious financial transactions.
- Other policies discussed include the Foreign Investment Promotion Board (FIPB), American/Global Depositary
In their search for sustainable development and endurable development strategies, neo-colonial economies of the Third World and Africa in particular gloss over massive corruption in public office and sit-tight syndrome of leaders. Rather, since attaining independence in the 1950s and 60s, their leaders have tinkered with several development strategies drawn from both the capitalists and socialist models. In all of these, development has remained a far cry as a result of many challenges faced by these economies. Strategies ranging from indigenization to export promotion and import substitution of the 1960s, to privatization and structural adjustment of the 1980s and Foreign Direct Investment of the 1990s have been experimented with varying degrees of success. Little has been done in the area of checking financial corruption and abuse of office by public office holders, building of strong institutions from which economic oriented strategies can be rooted and checking tenure elongation by leaders of states. The results have been huge failures and frustration on the part of development partners. This paper has attempted a survey approach to Foreign Direct Investment as a way out of structural imbalances of neo-colonial economies. Basing this examination on Nigeria, findings have shown that Foreign Direct Investment can work for development only if host government regulate the activities of foreign investors and also create enabling environment for investment to yield expected results.
The document provides an overview of international business, including:
1. It defines international business as commercial transactions between two countries and explains why companies engage in international business, such as expanding sales, acquiring resources, diversifying sources of sales and supplies, and minimizing competitive risk.
2. Recent growth in international business is due to expansion of technology, liberalization of cross-border movements, development of supporting services, and increased global competition.
3. The main modes of international business are merchandise exports and imports, service exports and imports, and foreign direct investment, which occurs when an investor gains a controlling interest in a foreign company.
Relation Between Inflow Of FDI and The Development Of India's EconomyIJTEMT
1) The document examines the relationship between foreign direct investment (FDI) inflows and economic development in India. It discusses how FDI has increased in India since economic reforms began in 1991, with sectors like services, telecommunications and software attracting significant investment.
2) The paper aims to analyze the impact of FDI on India's GDP as a measure of economic development. It also examines how economic reforms have affected FDI in India and constraints to increasing FDI.
3) The document provides context on the growth of FDI globally and its potential benefits, like increasing employment, productivity, and technology transfer. However, it notes that some studies have struggled to find a definitive causal link between FDI and economic
Foreign Direct Investment and Development of Manufacturing Sector in Nigeria ...inventionjournals
This study is centered on foreign direct investment and development of manufacturing sector from 1990-2014. Political unrest, epileptic power supply, militancy of Niger Delta region, unstable exchange rate and insurgency of the North east of Nigeria was identified as the hindrances to manufacturing sector. The work is anchored on mercantilist trade theory of Jean baptiste Colbert and Thomas hobbes. Secondary data was sourced from Central bank of Nigeria Statistical bulletin, CBN occasional paper number 32 on the dynamics of inflation in Nigeria. Diagnostic survey research pattern was applied for this study. Data obtained were analyzed using an ordinary least square method by the use of time series and seasonal variations. The results shows that FDI is growth enhancing and it equips and stabilizes exchange rate and reduces dependency on imported finished products, enhances profitability thus leads to survival of manufacturing sector. Recommendations include; policy makers should realize the essence of stable exchange rate so as to drive maximum benefit from investment. Government expenditure should encourage and promote investment to boost the manufacturing industries
Does Macroeconomic factors Impact on Foreign Direct Investment in emerging ec...AI Publications
Foreign direct investment is essential for economic growth of a country. It acts as a promoter for the economic development of a country. Keeping this in mind, the objective of this study is to determine the effect of macroeconomic variables such as interest rate, real exchange rate,inflation rate and stock market on foreign direct investment in Pakistan. For this purpose,study used the authentic annual data for the period of 27 years i.e. from 1990-2016. We are use for analysis E-View software, The empirical analysis involved using the ADF test to check the stationary of the data.Results revealed that interest rate and exchange rate have significant negative effect on FDI and stock market index has negative and unsignificant effect on FDI while inflation rate has positive and significant effect on FDI.
This document provides information on an International Finance course module, including:
- The instructor's contact information, course details, and an overview of the importance of international finance.
- Course objectives, distribution of marks, and 4 assignments focused on analyzing currency and foreign investment trends.
- 2 activities for students to discuss currencies and international stock exchanges.
- An outline of 22 planned lectures, their topics, and how they relate to the assignments. Key topics include foreign exchange markets, exposure, international trade/payments, monetary systems, and institutions.
- The goal is to equip students with international financial practices and provide insights into foreign exchange, markets, and hedging techniques used in global business.
The document provides an overview of the legal framework for growing international finance in India. It discusses several key acts and policies:
- The Foreign Exchange Regulation Act (FERA) of 1973 which imposed strict exchange controls was replaced by the Foreign Exchange Management Act (FEMA) of 1999 to liberalize controls.
- FEMA recognizes the distinction between current and capital account transactions and seeks to facilitate external trade and payments.
- The Prevention of Money Laundering Act (PMLA) of 2002 defines money laundering and outlines penalties. It established the Financial Intelligence Unit - India to analyze suspicious financial transactions.
- Other policies discussed include the Foreign Investment Promotion Board (FIPB), American/Global Depositary
This document discusses foreign direct investment and its relationship to economic growth. It provides background definitions of foreign direct investment and economic growth. It then examines different perspectives on foreign direct investment including the radical view that sees MNCs as exploiting host countries, the free market view that sees benefits from specialization and resource transfers, and pragmatic nationalism that allows FDI if benefits outweigh costs. The document also discusses trends in FDI flows globally and by region as well as impacts of FDI such as on competition and balance of payments.
Does Financial Development Cause Economic Growth in Egypt?SDGsPlus
This document discusses financial development and economic growth in Egypt. It provides background on Egypt's financial sector over time, from British occupation to periods of socialism, open-door policies, and recent economic reforms. It reviews literature on the relationship between financial development and growth. Trends in key financial development indices in Egypt are presented, including for financial institutions and markets. Indicators of financial development in Egypt are compared to other countries. The document analyzes trends in private banking credit, M2/GDP ratio, loans/deposits ratio, and liquid liabilities/GDP ratio to measure financial development. Banking sector competitiveness in Egypt as measured by lending rate less deposit rate is also discussed.
This document provides an overview of international capital movements. It discusses various types of capital movements including foreign direct investment, portfolio investment, and official flows. Foreign direct investment involves direct ownership in companies overseas, while portfolio investment is a passive investment in securities abroad. Official flows include loans and grants from governments and international organizations. The document also examines determinants of capital flows and the role of foreign capital in economic development for countries.
Capital Inflows and Economic Growth A Comperative Studyiosrjce
This study examines the impact of capital inflows on economic growth of developing* economies; the
case of Nigeria Ghana and India from 1986-2012. This is necessitated by the doubts being raised as whether the
huge inflows of foreign capita! in developing economies over the years have transmitted to real economic
growth. Augmented Dickey Fuller unit root test was employed to evaluate the stationarity of the data, while
Johansen Co-integration was used to estimate the long-run equilibrium relationship among the variables. The
casual relationship was tested using Granger Causality, and Ordinary Least Square method was used to
estimate the model. The finding reveals that capital inflows have significant impact on the economic growth of
the three countries. In Nigeria and Ghana, foreign direct and portfolio investment and foreign borrowings have
significant and positive impact on economic growth. Workers' remittances significantly and positively related to
the economic growth of the three countries. The enabling environment should be created in the Developing
Countries to encourage more inflow of foreign investments and workers remittances while India specifically
should channel their foreign aids to productive ends. This will help in dosing the savings-investment gap and
encourage economic growth in these countries. The study signifies that capital inflows is indispensable in
dosing the savings-investment gap required for economic growth of developing countries.
This document provides an overview and analysis of investment trends and opportunities in Africa. It discusses several key drivers of increased investment in Africa, such as surging demand from China and India, increased urbanization and rising consumerism, high commodity prices, and improved economic policies. The document also examines growing investment trends, including the development of consumer markets, growth of the mobile phone industry, Chinese investment in natural resources and infrastructure projects, and the potential for outsourcing manufacturing to Africa. Several challenges to investment are also outlined, including inflation concerns, inadequate infrastructure, and drought conditions in the Horn of Africa.
Modelling the Long Run Determinants of Foreign Portfolio in NigeriaMoses Oduh
1) This study examines the long-run determinants of foreign portfolio investment in Nigeria from 1981-2010 using time series analysis.
2) It finds that foreign portfolio investment has a positive long-run relationship with market capitalization and trade openness in Nigeria.
3) The study aims to help policymakers pursue policies that can attract more foreign portfolio investment in the long run, such as efforts to improve and sanitize the Nigerian capital market.
The document provides an overview of the evolution of international monetary systems from bimetallism to the modern system. It discusses how bimetallism used both gold and silver standards until the late 1800s, but countries eventually moved to single gold or silver standards. It then explains how the Bretton Woods system established the US dollar as the dominant currency pegged to gold in the mid-1900s. Growing US deficits and inflation led to the system's collapse in the 1970s. The current system involves floating exchange rates between most currencies and the IMF helps oversee global currency stability.
Importance International Financial Management Financeijtsrd
This document discusses the importance of international financial management. It notes that globalization and financial crises have made financial management more complex. International financial management plays an important role in reducing risks faced by multinational corporations through tools like managing currency exchange risk, forward contracts, and hedging. It also coordinates different business functions and helps measure business performance through financial analysis. Proper international financial management is crucial for the success of multinational businesses given the complex financial challenges of operating across different countries and currencies.
This document discusses globalization, liberalization, and agrarian distress in India that has contributed to increasing farmer suicides. It outlines how India began liberalizing its economy in 1991 through structural adjustment programs encouraged by international financial institutions. While the government claims reforms have helped development, facts from rural India show a deep crisis in the agrarian sector. Farmers face increasing insecurity and vulnerability due to reforms. The document analyzes how economic conditions during the reform phase have created conditions for farmer suicides across India.
The Vietnam Business Forum was organized in 2010 by Viet Trade Center in cooperation with Commerzbank to promote foreign direct investment in Vietnam. Vietnam has experienced strong economic growth in recent decades and is poised to continue growing rapidly. The forum featured presentations from German companies that have successfully invested in Vietnam to take advantage of opportunities in manufacturing, IT, infrastructure, and other sectors. The document provides an overview of Vietnam's business environment and the prospects for foreign investment as the country develops its economy and integrates further into the global market.
International financial management is important for several reasons: (1) International trade corresponds to currency transactions as goods move between countries; (2) Specialization and trade allow countries to focus on goods they have a comparative advantage in and import other goods, benefiting all countries; (3) Globalization has led firms to expand internationally to exploit competitive advantages and imperfect foreign markets. International trade and financial management are crucial for world economic growth and development.
An Analysis of Emerging Markets". = Honors Thesisdre101
This document is the Honors Thesis that was done during my final semester at Hofstra University. This Honors Thesis received High Departmental Honors from the Finance Department at Hofstra University. The Honors Thesis was an analysis of the status of emerging markets at the time of the thesis. My research on emerging markets was done primarily through an analysis of emerging market equity mutual funds.
Foreign Investment and Its Effect on the Economic Growth in Nigeria: A Triang...iosrjce
Evidence abound about the registered increase in foreign investment inflows in recent years. While
proponents emphasize that these inflows could engender economic growth, critics express concern that there
could be destabilizing effect on the economy if not well managed. This study therefore, attempts to examine the
effect of foreign investments (disaggregated into foreign direct investment and foreign portfolio investment)
inflows on economic growth in Nigeria with a view to ascertaining the better contributor, using time series data
from 1987-2012. The OLS and the Granger causality procedures were employed in analyzing the data. The
result displays that both foreign direct investment and foreign portfolio investment have positive and significant
effect on economic growth though the partial correlation coefficients show that foreign portfolio investment is
the better contributor. Based on the result, government should pursue policies that encourage both foreign
direct investment and especially foreign portfolio investment.
Abstract: Nigeria is one of the economies with great demand for goods and services and has attracted some foreign direct investment over the years. The amount of foreign direct investment inflow in to Nigeria has reached US $ 2.23 billion in 2003 and it rose to US $ 5.31 billion in 2004 (a 138 % increase), this figure rose again to US $ 9.92 billion (an 87% increase) in 2005. The figure however declined slightly to US $ 9.44 in 2006 while it has been on astronomical fall since 2006 till date. (CBN, 2011). The question that comes to mind is, do these for actually contribute to economic growth in Nigeria? If foreign direct investment actually contribute to growth, then, the sustainability of foreign direct investment is a worthwhile activity and a way of achieving this sustainability is by identifying the factors contributing to its growth with a view to ensuring its enhancement. The nose driving this research is to determine the short run impact of FDI on economic growth, OLS with ward test analysis was employed to determine the short run analysis of impact of FDI on economic growth. The result shows that all the explanatory variables such as Gross Fixed capital formation (GFCF), Total labour force (TLBF), Foreign Direct Investment (FDI) Lending rate and Average Manufacturing Capacity Utilization (AMCU) grossly affect economic growth in Nigeria. The result also implies that there exist a singleton (short run) impact of FDI on economic growth, recommendation was made that government must put in place all the pull factors such as good road, stable power supply and most essentially security of life and property of foreign investors in order to reduce the level of unemployment which serves as impediment to sustainable development in the Nation Nigeria.
This document provides an overview and comparative study of outward foreign direct investment from China and Thailand from 2001 to the present. It finds that both Chinese and Thai governments have used outward FDI policies to encourage their companies to invest abroad, with China adopting its "Go Global" strategy in 2001 and Thailand launching a new two-way investment policy strategy focusing on Thai OFDI. The Chinese government has played a stronger supporting role through various OFDI policies and measures compared to Thailand. The value and number of Chinese outward FDI has increased substantially since implementing its policies, while Thai outward FDI remains a low percentage of GDP compared to other countries in the region.
In this presentation, we will discuss various features and types of foreign trade. We will also discuss the favorable and unfavorable conditions for trading, important legal terms and agreements that needs to be maintained, methods of foreign trade, off-shore banking and overview on European currency units.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
This document provides an overview of international finance concepts including the balance of payments, factors influencing international trade flows, and agencies that facilitate international capital flows. It defines the balance of payments as a measurement of all transactions between domestic and foreign entities over a period of time. The balance of payments is made up of a current account, capital account, and financial account. It also discusses factors that can influence international trade flows such as inflation, national income, government restrictions, and exchange rates. Finally, it outlines the roles of the International Monetary Fund and World Bank in facilitating international capital flows.
This document discusses several theories of foreign direct investment (FDI). It begins by outlining Vernon's production cycle theory from 1966, which sought to explain US investment in Western Europe after WWII. It also discusses theories related to exchange rates on imperfect capital markets and internalization theory. However, the document notes that no single theory can fully explain FDI. It spends most time discussing Dunning's eclectic paradigm/OLI framework from the 1970s, which integrates theories of ownership advantages, location advantages, and internalization to explain why some companies engage in FDI over other options. In conclusion, the document states that while many theories have been proposed, none provide a unified explanation for FDI and its causes.
E:\Notes Of M Com 2\Converted Pdf Notes\International Businessguesta42743
This document provides an overview of international business. It defines international business as commercial transactions between two countries. It discusses why companies engage in international business, including expanding sales, acquiring resources, diversifying sources of sales/supplies, and minimizing competitive risk. Recent growth in international business is due to expansion of technology, liberalization of trade barriers, development of supporting services, and increased global competition. There are various modes of international business, including merchandise exports/imports, service exports/imports, foreign direct investment, and portfolio investment.
This document discusses foreign direct investment and its relationship to economic growth. It provides background definitions of foreign direct investment and economic growth. It then examines different perspectives on foreign direct investment including the radical view that sees MNCs as exploiting host countries, the free market view that sees benefits from specialization and resource transfers, and pragmatic nationalism that allows FDI if benefits outweigh costs. The document also discusses trends in FDI flows globally and by region as well as impacts of FDI such as on competition and balance of payments.
Does Financial Development Cause Economic Growth in Egypt?SDGsPlus
This document discusses financial development and economic growth in Egypt. It provides background on Egypt's financial sector over time, from British occupation to periods of socialism, open-door policies, and recent economic reforms. It reviews literature on the relationship between financial development and growth. Trends in key financial development indices in Egypt are presented, including for financial institutions and markets. Indicators of financial development in Egypt are compared to other countries. The document analyzes trends in private banking credit, M2/GDP ratio, loans/deposits ratio, and liquid liabilities/GDP ratio to measure financial development. Banking sector competitiveness in Egypt as measured by lending rate less deposit rate is also discussed.
This document provides an overview of international capital movements. It discusses various types of capital movements including foreign direct investment, portfolio investment, and official flows. Foreign direct investment involves direct ownership in companies overseas, while portfolio investment is a passive investment in securities abroad. Official flows include loans and grants from governments and international organizations. The document also examines determinants of capital flows and the role of foreign capital in economic development for countries.
Capital Inflows and Economic Growth A Comperative Studyiosrjce
This study examines the impact of capital inflows on economic growth of developing* economies; the
case of Nigeria Ghana and India from 1986-2012. This is necessitated by the doubts being raised as whether the
huge inflows of foreign capita! in developing economies over the years have transmitted to real economic
growth. Augmented Dickey Fuller unit root test was employed to evaluate the stationarity of the data, while
Johansen Co-integration was used to estimate the long-run equilibrium relationship among the variables. The
casual relationship was tested using Granger Causality, and Ordinary Least Square method was used to
estimate the model. The finding reveals that capital inflows have significant impact on the economic growth of
the three countries. In Nigeria and Ghana, foreign direct and portfolio investment and foreign borrowings have
significant and positive impact on economic growth. Workers' remittances significantly and positively related to
the economic growth of the three countries. The enabling environment should be created in the Developing
Countries to encourage more inflow of foreign investments and workers remittances while India specifically
should channel their foreign aids to productive ends. This will help in dosing the savings-investment gap and
encourage economic growth in these countries. The study signifies that capital inflows is indispensable in
dosing the savings-investment gap required for economic growth of developing countries.
This document provides an overview and analysis of investment trends and opportunities in Africa. It discusses several key drivers of increased investment in Africa, such as surging demand from China and India, increased urbanization and rising consumerism, high commodity prices, and improved economic policies. The document also examines growing investment trends, including the development of consumer markets, growth of the mobile phone industry, Chinese investment in natural resources and infrastructure projects, and the potential for outsourcing manufacturing to Africa. Several challenges to investment are also outlined, including inflation concerns, inadequate infrastructure, and drought conditions in the Horn of Africa.
Modelling the Long Run Determinants of Foreign Portfolio in NigeriaMoses Oduh
1) This study examines the long-run determinants of foreign portfolio investment in Nigeria from 1981-2010 using time series analysis.
2) It finds that foreign portfolio investment has a positive long-run relationship with market capitalization and trade openness in Nigeria.
3) The study aims to help policymakers pursue policies that can attract more foreign portfolio investment in the long run, such as efforts to improve and sanitize the Nigerian capital market.
The document provides an overview of the evolution of international monetary systems from bimetallism to the modern system. It discusses how bimetallism used both gold and silver standards until the late 1800s, but countries eventually moved to single gold or silver standards. It then explains how the Bretton Woods system established the US dollar as the dominant currency pegged to gold in the mid-1900s. Growing US deficits and inflation led to the system's collapse in the 1970s. The current system involves floating exchange rates between most currencies and the IMF helps oversee global currency stability.
Importance International Financial Management Financeijtsrd
This document discusses the importance of international financial management. It notes that globalization and financial crises have made financial management more complex. International financial management plays an important role in reducing risks faced by multinational corporations through tools like managing currency exchange risk, forward contracts, and hedging. It also coordinates different business functions and helps measure business performance through financial analysis. Proper international financial management is crucial for the success of multinational businesses given the complex financial challenges of operating across different countries and currencies.
This document discusses globalization, liberalization, and agrarian distress in India that has contributed to increasing farmer suicides. It outlines how India began liberalizing its economy in 1991 through structural adjustment programs encouraged by international financial institutions. While the government claims reforms have helped development, facts from rural India show a deep crisis in the agrarian sector. Farmers face increasing insecurity and vulnerability due to reforms. The document analyzes how economic conditions during the reform phase have created conditions for farmer suicides across India.
The Vietnam Business Forum was organized in 2010 by Viet Trade Center in cooperation with Commerzbank to promote foreign direct investment in Vietnam. Vietnam has experienced strong economic growth in recent decades and is poised to continue growing rapidly. The forum featured presentations from German companies that have successfully invested in Vietnam to take advantage of opportunities in manufacturing, IT, infrastructure, and other sectors. The document provides an overview of Vietnam's business environment and the prospects for foreign investment as the country develops its economy and integrates further into the global market.
International financial management is important for several reasons: (1) International trade corresponds to currency transactions as goods move between countries; (2) Specialization and trade allow countries to focus on goods they have a comparative advantage in and import other goods, benefiting all countries; (3) Globalization has led firms to expand internationally to exploit competitive advantages and imperfect foreign markets. International trade and financial management are crucial for world economic growth and development.
An Analysis of Emerging Markets". = Honors Thesisdre101
This document is the Honors Thesis that was done during my final semester at Hofstra University. This Honors Thesis received High Departmental Honors from the Finance Department at Hofstra University. The Honors Thesis was an analysis of the status of emerging markets at the time of the thesis. My research on emerging markets was done primarily through an analysis of emerging market equity mutual funds.
Foreign Investment and Its Effect on the Economic Growth in Nigeria: A Triang...iosrjce
Evidence abound about the registered increase in foreign investment inflows in recent years. While
proponents emphasize that these inflows could engender economic growth, critics express concern that there
could be destabilizing effect on the economy if not well managed. This study therefore, attempts to examine the
effect of foreign investments (disaggregated into foreign direct investment and foreign portfolio investment)
inflows on economic growth in Nigeria with a view to ascertaining the better contributor, using time series data
from 1987-2012. The OLS and the Granger causality procedures were employed in analyzing the data. The
result displays that both foreign direct investment and foreign portfolio investment have positive and significant
effect on economic growth though the partial correlation coefficients show that foreign portfolio investment is
the better contributor. Based on the result, government should pursue policies that encourage both foreign
direct investment and especially foreign portfolio investment.
Abstract: Nigeria is one of the economies with great demand for goods and services and has attracted some foreign direct investment over the years. The amount of foreign direct investment inflow in to Nigeria has reached US $ 2.23 billion in 2003 and it rose to US $ 5.31 billion in 2004 (a 138 % increase), this figure rose again to US $ 9.92 billion (an 87% increase) in 2005. The figure however declined slightly to US $ 9.44 in 2006 while it has been on astronomical fall since 2006 till date. (CBN, 2011). The question that comes to mind is, do these for actually contribute to economic growth in Nigeria? If foreign direct investment actually contribute to growth, then, the sustainability of foreign direct investment is a worthwhile activity and a way of achieving this sustainability is by identifying the factors contributing to its growth with a view to ensuring its enhancement. The nose driving this research is to determine the short run impact of FDI on economic growth, OLS with ward test analysis was employed to determine the short run analysis of impact of FDI on economic growth. The result shows that all the explanatory variables such as Gross Fixed capital formation (GFCF), Total labour force (TLBF), Foreign Direct Investment (FDI) Lending rate and Average Manufacturing Capacity Utilization (AMCU) grossly affect economic growth in Nigeria. The result also implies that there exist a singleton (short run) impact of FDI on economic growth, recommendation was made that government must put in place all the pull factors such as good road, stable power supply and most essentially security of life and property of foreign investors in order to reduce the level of unemployment which serves as impediment to sustainable development in the Nation Nigeria.
This document provides an overview and comparative study of outward foreign direct investment from China and Thailand from 2001 to the present. It finds that both Chinese and Thai governments have used outward FDI policies to encourage their companies to invest abroad, with China adopting its "Go Global" strategy in 2001 and Thailand launching a new two-way investment policy strategy focusing on Thai OFDI. The Chinese government has played a stronger supporting role through various OFDI policies and measures compared to Thailand. The value and number of Chinese outward FDI has increased substantially since implementing its policies, while Thai outward FDI remains a low percentage of GDP compared to other countries in the region.
In this presentation, we will discuss various features and types of foreign trade. We will also discuss the favorable and unfavorable conditions for trading, important legal terms and agreements that needs to be maintained, methods of foreign trade, off-shore banking and overview on European currency units.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
This document provides an overview of international finance concepts including the balance of payments, factors influencing international trade flows, and agencies that facilitate international capital flows. It defines the balance of payments as a measurement of all transactions between domestic and foreign entities over a period of time. The balance of payments is made up of a current account, capital account, and financial account. It also discusses factors that can influence international trade flows such as inflation, national income, government restrictions, and exchange rates. Finally, it outlines the roles of the International Monetary Fund and World Bank in facilitating international capital flows.
This document discusses several theories of foreign direct investment (FDI). It begins by outlining Vernon's production cycle theory from 1966, which sought to explain US investment in Western Europe after WWII. It also discusses theories related to exchange rates on imperfect capital markets and internalization theory. However, the document notes that no single theory can fully explain FDI. It spends most time discussing Dunning's eclectic paradigm/OLI framework from the 1970s, which integrates theories of ownership advantages, location advantages, and internalization to explain why some companies engage in FDI over other options. In conclusion, the document states that while many theories have been proposed, none provide a unified explanation for FDI and its causes.
E:\Notes Of M Com 2\Converted Pdf Notes\International Businessguesta42743
This document provides an overview of international business. It defines international business as commercial transactions between two countries. It discusses why companies engage in international business, including expanding sales, acquiring resources, diversifying sources of sales/supplies, and minimizing competitive risk. Recent growth in international business is due to expansion of technology, liberalization of trade barriers, development of supporting services, and increased global competition. There are various modes of international business, including merchandise exports/imports, service exports/imports, foreign direct investment, and portfolio investment.
Financial globalization refers to the integration of financial markets around the world. It has increased capital flows between countries and led to benefits like increased funds and prevention against financial crises. However, critics argue that it also increases the risk of financial crises and that advanced countries are hypocritical in their policies around aid and trade. Foreign direct investment and foreign institutional investors have also played a major role in financial globalization and the economies of countries like India.
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A comparative analysis of foreign direct investment in china and indiaAlexander Decker
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G0341052058
1. International Journal of Business and Management Invention
ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X
www.ijbmi.org ǁ Volume 3 ǁ Issue 4 ǁ April 2014 ǁ PP.52-58
www.ijbmi.org 52 | Page
Global Fdi- Trends and Patterns
Rishika Nayyar1
, Priti Aggarwal2
1
(Department of Commerce, PGDAV College, Delhi University, India)
2
(Department of Commerce, Kirori Mal College, Delhi University, India)
ABSTRACT: One of the striking features of the world economy has been the FDI flows which have grown
steadily in volume and have outpaced the growth rate in world trade and outputs as increasing number of firms
from developed as well as developing nations of the world seek to improve their locational portfolio of assets.
The paper attempts to summarize the trends and patterns observed in global FDI flows during 1970-2012.
KEY TERMS: Foreign Direct investment, Global FDI, FDI flows, Trends
I. INTRODUCTION
International Monetary Fund defines 'FDI' as an investment, which is made to acquire a lasting interest
in an enterprise operating in an economy other than that of the investor, the investor's purpose being to have an
effective voice in management of the enterprise. In addition to equity participation, it also includes other non-
equity forms of investment and control, such as, sub-contracting, management contract, turnkey agreement,
franchising, licensing and product sharing. The striking feature of world economy in the recent decades has
been the growth of FDI which has outpaced the growth in international trade and output. Increasing competition
in the home country, improved means of communication and transportation and continuous economic
liberalization in many economies are some of the factors driving international investment. In this context, the
paper lays down the theoretical framework for FDI and outlines the major trends observed in global FDI flows
during 1970 -2012. The paper is structured as follows. Section 2 is devoted to literature review. Section 3
discusses the trends and patterns of world FDI flows. Section 4 concludes.
II. REVIEW OF LITERATURE
The theory of capital movements was the earliest explanation for FDI, which was viewed as a part of
portfolio investments (Iversen, 1935; Aliber, 1971). Initial contributions to the literature made by Hymer (1960)
and Kindelberger, 1969 explained FDI as the means of transferring knowledge and other firm assets, both
tangible and tacit, in order to organize production abroad. Firms choose hierarchies over arms length transaction
to retain ownership and control over its unique proprietary assets. Vernon (1966) used the product life cycle
concept to theorize that firms set up production facilities abroad for products that had already been standardized
and matured in the home markets. The seminal works of Hymer(1976) and Kindelberger (1969) drew various
contributions to the literature on FDI. R.H.Coase put forth the explanation of FDI from the Transaction cost
perspective which views FDI as an organizational response to market imperfections. In similar vein,
internalization theory explains FDI as response to the market failure for rent yielding resources and an attempt
by the efficiency seeking firms to reduce transaction costs of cross border activity (Buckley and Casson 1976;
Rugman 1981). From an organization learning perspective, March (1991) suggested that FDI is an outcome of
the desire of firms to improve returns, present return or future returns. Dunning (1993) propounded Ownership,
Location and Internalization (OLI) advantages based framework to explain firms‟ internationalization
behaviour. Dunning‟s OLI framework bridged the idea of market power and transaction cost approach and
explained FDI as an attempt to exploit ownership specific advantages in overseas market through the process of
internalization.
These theoretical frameworks explained internationalization from asset exploiting perspective. The
investment behaviour of firms from newly emerging economies that do not necessarily possess rent yielding
assets can be explained from Asset Seeking Perspective (Makino et al, 2002). The asset augmenting or asset
seeking perspective of FDI suggests that firms engage in FDI not only when they want to exploit its competitive
advantages in a foreign market but also when they want to acquire complementary strategic assets possessed by
firms in host countries, in order to enhance its international competitiveness. (Dunning 1995, 1998 and 2000).
Building upon the asset seeking perspective,Mathews (2002) proposed that EMNCs represent instances of
accelerated internationalization and use their latecomer position to their advantage through repeated
applications of a process of „linkage, leverage and learning‟. They are not operating in a world where they seek
to push monopolistic advantages as much as one where they seek to tap resources elsewhere and device
2. Global Fdi- Trends and Patterns
www.ijbmi.org 53 | Page
appropriate strategies and organizational forms for doing so. Luo and Tung (2007) argue that emerging
economy MNCs internationalize through a distinct process dubbed „springboarding‟, designed to achieve the
dual purpose of acquiring strategic resources abroad and reducing their institutional and market constraints at
home.
III. GLOBAL FDI- TRENDS
The past 30 years has seen marked increase in FDI flows and stock. The world FDI stock increased
phenomenally from US $ 698 billion in 1980 to US $ 23 trillion in 2012. The growth in FDI flows has indeed
outpaced rate of growth in international trade. The trends in global FDI are discussed in three phases.
3.1 Phase I: 1970-1990 (North-North Phenomenon)
The average annual FDI flows during this period were recorded at about US$70 billion with developed
countries accounting for almost three fourth of the world FDI inflows and 96% of world outflows. The first FDI
boom took place in 1979-1981 triggered by the second oil crisis at the end of the 1970s. Global FDI outflows
increased from US $ 39 billion in 1978 to US $63 billion in 1979 before falling back to US $ 27 billion in the
year 1982. The short lived boom was led by major oil producing countries on the inward side. Saudi Arabia was
the second largest FDI recipient after the United States during that period. After slowing down for the couple of
years, FDI flows bounced back quickly in mid 1980. During the period 1983-1989, world FDI flows grew at an
annual compounded growth rate of 28.9%, almost 4 times the rate of growth in world income and 3 times the
rate of growth in world trade. The surge in FDI after 1985 was largely attributed to increase in investment flows
among the industrialized nations. The G5 nations- France, West Germany, Japan, the United Kingdom and the
United States accounted for almost 70% of global outflows and were recipient of about 57% of these flows.
Nations classified as “developed market economies” by the United Nations were home to 93% of FDI flows and
host to 81% of world FDI flows. Thus, developing countries received only 19% of total FDI during this period.
Majority of such inflows were accounted for by small group of nations, namely, Mexico, Brazil and the Asian
newly industrialized countries.
Figure:1 (UNCTAD FDI STATISTICS)
3. Global Fdi- Trends and Patterns
www.ijbmi.org 54 | Page
Figure: 2 (UNCTAD FDI STATISTICS)
Figure: 3 (UNCTAD FDI STATISTICS)
3.2 Phase II: 1991-2000
World FDI flows during this period showed an upward trend with average FDI flows being recorded at US $519
billion.
Figure: 4 (UNCTAD FDI STATISTICS)
4. Global Fdi- Trends and Patterns
www.ijbmi.org 55 | Page
This period saw increasing number of countries altering their investment regimes to make it favorable
to Foreign Direct Investment. The number of countries making investment regime more liberal and conducive to
foreign investment increased from 35 in 1991 to 63 in 1999. The changes in national FDI laws were
complemented by the conclusion of new bilateral investment treaties (BITs), an increasing number between
developing countries (WIR 2000). As a result the share of developing countries in global FDI inflows rose from
25% in phase I to 31% during 1991-2000 and its share in outflows increased from 4% to 13% during the same
time period.
Figure: 5 (UNCTAD FDI STATISTICS)
Figure: 6 (UNCTAD FDI STATISTICS)
A large chunk of FDI inflows in developing countries were directed towards China. As a result of
liberalizing investment regime among other factors, China has become the largest FDI recipient country among
the developing countries since 1992, accounting for almost a quarter of total inflows during 1991-2000. Global
FDI flows set a new record post 1997 showing an average annual increase of 43% during 1998-2000. In 1998,
world FDI outflows reached a record level of $ 690 billion and inflows of $706 billion. These levels were
reached against the backdrop of numerous unfavorable economic conditions in the world economy such as
Asian Financial Crisis, halting of high economic growth in East and South East Asia, economic recession in
Japan and weak commodity and petroleum process impacting adversely the economies of East and South East
Asia. However, this increase in FDI is accounted solely by the developed countries that experienced stable
growth rate during the period and mainly because the effects of recession in Japan were compensated by
increase in production in the United States and the European Union (UNCTAD 1999). After stagnating in 1998,
FDI flows to developing countries have resumed their earlier growth trend. In 1999, developing countries
received $208 billion in FDI, an increase of 16 per cent over 1998 and an all time high.
5. Global Fdi- Trends and Patterns
www.ijbmi.org 56 | Page
Figure: 7 (UNCTAD FDI STATISTICS)
3.3 Phase III: 2001 Onwards
The period 2001-2012 is associated with a considerable amount of variations in global FDI flows; the
trend has been upward though. Annual average inflows during this period are recorded at about $1226 billion.
Figure 8 (UNCTAD FDI STATISTICS)
Continuing economic liberalization in the developing countries, slowdown in developed countries due
to global financial crisis of 2008 and the recent euro zone crisis have resulted in the increase in share of
developing countries in the global FDI flows. Developing countries on an average accounted for 37% of inflows
and 18% of outflows up from 31% and 13% respectively during the last decade.
6. Global Fdi- Trends and Patterns
www.ijbmi.org 57 | Page
Figure 9 (UNCTAD FDI STATISTICS)
Figure 10 (UNCTAD FDI STATISTICS)
As compared to the year 2000, Global FDI flows declined sharply in 2001 with inflows falling by 51%
and outflows by 55%. This steady decline in global FDI flows was led by decline in FDI flows to and from the
developed nations of the world on account of slowdown in economic activity an major industrial economies.
The slowdown in inflows was first of its kind and magnitude since 1991 and in outflows since 1992. Global FDI
flows showed modest signs of recovery in the year 2004 after large declines in their values in 2001, 2002(13%)
and 2003(12%). The recovery in FDI flows was accounted by recovery in developing countries. A number of
developing countries in Asia, Africa and Latin America experienced strong economic growth and partly as a
result received significantly higher FDI inflows. FDI flows reached its all time high in the year 2007 being
recorded at about $2 trillion owing to high economic growth and strong economic performance in many parts of
the world. However, international investments were severely affected by the financial and economic crisis that
originated in US in mid 2007. After reaching the historic high of US $ 2272 billion in 2007, Global FDI outflow
fell down to US $ 2005 billion in 2008. Investment remained numb in the following year and began to bottom
out in the latter half of 2009. This was followed by modest recovery in first half of 2010. In 2011, global FDI
outflows recorded an increase of 16% rising to US$ 1.7 trillion, surpassing the 2005-2007 pre crisis level for the
first time. The strong recovery observed in 2011 could not last long and was followed by 17% decline in global
FDI flows in the following year, owing to decline on outward FDI by developed countries. The decline in
outward FDI by the developed countries is partly explained by deepening of sovereign debt crisis in the euro
zone.
7. Global Fdi- Trends and Patterns
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IV. CONCLUSION
The paper highlights the trend and patterns observed in Global FDIs which has been following an
upward trend since 1970s. In initial years, global FDI outflows and inflows were majorly driven by the
developed nations of the world indicating North-North phenomenon, where firms in advanced countries
invested in other advanced industrialized countries. US had been the most preferred investment destination.
However in the recent years and more particularly 2000 onwards share of developing countries in global FDI
flows have increased at a commendable pace. Various macroeconomic events ranging from Asian Financial
Crisis, Global Financial Crisis of 2008, euro zone crisis are responsible for the observed transformations in the
FDI flows. The increased share of developing countries in the global outflows and inflows reflects the growing
South-South phenomenon which can be expected to gain further momentum in the future.
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