国际经济学基础Chapter 9.pptVIP

* Chapter 9 International Resource Movements and Multinational Corporations * Contents 9.1 Introduction 9.2 Types of Foreign Investments 9.3 Data on International Capital Flows 9.4 Motives for International Portfolio Investments 9.5 Motives for Direct Foreign Investments 9.6 Effects of International Capital Flows on Investing and Host Countries 9.7 Multinational Corporations 9.8 Motives and Welfare Effects of International Labor Migration * 9.2 Types of Foreign Investment International investment flows Portfolio investment Direct investment and multinational corporations International labor migration * 9.4 Motives for International Portfolio Investments A substitution for international trade The factor price equalization theory shows that factor returns should equalize after free trade. Full free trade may not occur. Non-tradable goods Transactions costs Government restrictions on trade Therefore, factor price equalization is unlikely to occur. Portfolio investment takes advantage of the higher returns available in some nations. * Motives for International Portfolio Investments The basic motives for international portfolio investments are yield maximization and risk diversification. The latter is also required to explain two-way capital movements. Portfolio theory Different expectation * The Portfolio Theory The average return and the risk Stock A 30% return on average, 20%-40% yield Stock B 30% return on average, 10%-50% yield Which one will you choose? * The Portfolio Theory Portfolio theory demonstrates that investing in securities with yields that are inversely related over time, a given yield can be obtained at a smaller risk or a higher yield can be obtained for the same level of risk for the portfolio as a whole. A portfolio including both domestic and foreign securities can have a higher average yield and lower risk than a portfolio containing only domestic securities. * 9.5 Motives for Direct Foreign Investments The basic motives Earn higher returns (h