世界经济概论（英文版）chapter_02_International_Investment教材教学课件.pptxVIP

Chapter 2 International InvestmentIn this chapter, we’ll cover:Defining International InvestmentForeign Direct Investment: Pros and ConsGovernment Policies towards FDIEvolution of Global FDIMultinational CorporationsDefining International InvestmentFour categories of international investment: Commercial loans Official flows Foreign direct investment （FDI) Foreign portfolio investment (FPI)Defining International InvestmentFDI: international investment in which the investor obtains a lasting interest in an enterprise in another country. Inward FDI: investments coming into the country Outward FDI: investments made by companies from that country into foreign companies in other countriesDefining International InvestmentFPI: investment in a company’s stocks, bonds, assets, or money market instruments that are based in a different country.Distinction between FDI and FPI: FPI can be much more volatileForeign Direct Investment: Pros and ConsPros:Provide foreign capital and fundsBenefits the host countries 1. Create jobs in regional labor market 2. Introduce advanced technology and technical know-how 3. Gain a greater foothold in the world economy and integrate into a wider market 4. Employees get exposed to globally valued skillsForeign Direct Investment: Pros and ConsFDI is beneficial to the investors and their home country: Access to a larger market Ability to tap the potential of cheap and skilled labor, Availability of natural resources of the host countryForeign Direct Investment: Pros and ConsBenefits the recipient country reaps from FDI: Inflow of foreign capital into its country The sharing of technical and managerial expertiseGovernment Policies towards FDIMany governments encourage FDI in their countries as a way to create jobs, expand local technical knowledge, and increase their overall economic standards.Government Policies towards FDIIn contrast, many countries have restricted or controlled inward FDI for decades by requiring extensive paperwork and bureauc