Decision support for foreign investment strategy under hybrid uncertainty

2012 ◽  
Vol 39 (4) ◽  
pp. 4582-4589
Author(s):  
Po-yuan Chen ◽  
Horng-jinh Chang

The phenomenal story of China’s ‘unprecedented disposition to engage the international legal order’ has been primarily told and examined by political scientists and economists. Since China adopted its ‘open door’ policy in 1978, which altered its development strategy from self-sufficiency to active participation in the world market and aimed at attracting foreign investment to fuel its economic development, the underlying policy for mobilizing inward foreign direct investment (IFDI) remains unchanged to date. With the 1997 launch of the ‘Going Global’ policy, an outward focus regarding foreign investment has been added, to circumvent trade barriers and improve the competitiveness of Chinese firms, typically its state-owned enterprises (SOEs). In order to accommodate inward and outward FDI, China’s participation in the international investment regime has underpinned its efforts to join multi-lateral investment-related legal instruments and conclude international investment agreements (IIAs). China began by selectively concluding bilateral investment treaties (BITs) with developed countries (major capital exporting states to China at that time), signing its first BIT with Sweden in 1982. Despite being a latecomer, over time China’s experience and practice with the international investment regime have allowed it to evolve towards liberalizing its IIAs regime and balancing the duties and benefits associated with IIAs. The book spans a broad spectrum of China’s contemporary international investment law and policy: domestic foreign investment law and reforms, tax policy, bilateral investment treaties, free trade agreements, G20 initiatives, the ‘One Belt One Road’ initiative, international dispute resolution, and inter-regime coordination.


2000 ◽  
Author(s):  
Carol Vesier

Abstract Effectively managing unpredictability requires decision support tools that can predict the financial and business outcomes of various supply chain strategies. This paper will discuss the role of these decision support tools and their characteristics as well as review a case study. In the case study, decision support tools facilitated development of strategies that increased after tax profit by $140 Million. These strategies included: • Reliability improvement strategy: Identifying the reliability improvements that offered the biggest profitability impact. • Supply chain strategy: Defining inventory management and production scheduling rules that ensured order shipment within two days. • Capital investment strategy: Defining when new capacity should come on line as well as the minimum capital investment.


2016 ◽  
Vol 9 (3) ◽  
pp. 37-48
Author(s):  
Mostafa Bachrane ◽  
Abdelilah Khaled ◽  
Jamila El Alami ◽  
Mostafa Hanoune

In this paper, the authors present a case study that aims to apply some sound MCDM techniques in the case of Economic Intelligence (EI) and show how the use of strategic information may help deciders to choose among geographic locations in which they could settle their investments. In this regard, the authors propose a new method that uses the multi-criteria decision support of MACBETH to tackle this issue. This method is used to rank thirteen countries likely to be chosen for location in order of preference from good to unfavourable. The integration of the MCDM in Economic Intelligence (EI) permits to rank countries of the Mediterranean according to their territorial competitiveness obtained through the global scores computed by the aforementioned technique of MACBETH. The results obtained allow the authors to affirm that France and Morocco have favourable strategic assets to attract foreign investment.


2014 ◽  
Vol 8 (3) ◽  
pp. 193-208
Author(s):  
Bradley J. Koch

Purpose – The purpose of this paper is to analyze the first-mover decision as one decision of a set of strategic decisions that ultimately determine performance. Design/methodology/approach – The author used survey data collected from foreign-invested firms in Sichuan, China, to test for evidence that first-movers perform better than late-movers. Findings – The results reveal that there is a first-mover advantage when the other strategic variables are not included in the model. When the entire set of strategic variables is included, however, the first mover variable loses its significance and the willingness of the foreign partner to commit additional resources becomes the best predictor of performance. Consequently, it was argued that foreign investment strategies should be analyzed as a set of strategic decisions managers make to formulate the best mix. Originality/value – The empirical evidence for the first-mover advantage may not be as well grounded as many have thought. When the first-mover strategic decision is analyzed in isolation from other strategic variables, which is commonly done in many empirical studies, it indicates that firms that enter China before their competitors perform better. Unfortunately, it is more logical to assume that managers dynamically develop a set of strategic decisions that ultimately determine the firm’s performance. To extrapolate one static decision from the strategic decision set and make broad assertions about its effect of performance is an over-simplification of the strategic decision process.


Author(s):  
O. Lisnichuk

The article describes the organizational and financial characteristics of business clusters formation in Ukraine and European countries. The author came to the conclusion that the cluster is a territorially limited system of enterprises, which provides a cycle from production to the sale of products, within which there are: enterprises of the main production, enterprises and organizations, serving the main production, financial organizations, as well as research institutions, which provide innovative development. The author also concluded that in Ukraine the clustered form of organization of the economy has not yet become sufficiently applied and disseminated. There are no perfect investments and innovation mechanisms for the formation and functioning of clusters, financial mechanisms of state regulation of their activities are ineffective. This includes, in particular, financing, direct financial assistance, subventions, subsidies, etc. The main components of the state economic policy - monetary, tax, depreciation and investment (especially in the field of foreign investment in the border regions attracting) - still do not perform functions of regional development stimulators. In general, the formation of clusters in Ukraine is slow because the proper state policy is not implemented. A separate complexity is the need to provide conditions for the effective development of small business. As it was already mentioned in this paper, the cluster association becomes the center of concentration of investment funds, which affects the formation of the investment strategy of the enterprises members of the cluster. Within the investment strategy, enterprises form investment portfolios in the direction of the sources of attraction or in the direction of investment of these funds.


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