Conceptual Basis of International Investments

2018 ◽  
pp. 1-34
Keyword(s):  
International Investment ◽  
Theoretical Background ◽  
Foreign Direct Investments ◽  
Conceptual Basis ◽  
Host Countries ◽  
International Investments ◽  
International Portfolio ◽  
Pros And Cons ◽  
International Investors ◽  
National Economies

This chapter provides a theoretical background for international investments in general. However, before going into the conceptual details of international investments, the concept of investment in general is clarified with respect to national economies in terms of financial and real capital or fixed investments. From the viewpoint of investors' objectives of controlling the investment area, international investments are classified in two general categories: international portfolio investments and foreign direct investments. In order to complete the conceptual basis of international investments, the theoretical aspects of foreign direct investments as the main subject of this book are discussed so as to establish a theoretical background for the book. Therefore, upon describing various forms of foreign direct investments, the reasons for international investors to invest abroad as well as the advantages of direct investments for host countries are expounded to give the reader a holistic picture about the importance of foreign direct investments for both international investors and host countries. Eventually, the traditional political critiques of international investment are given to cover all pros and cons of international investments in general and foreign direct investments specifically. Finally, the essential reasons for conducting a comprehensive feasibility study for planning and analyzing foreign direct investments are discussed in order to expound the significance of this book.

scholarly journals FOREIGN DIRECT INVESTMENTS UNDER IMPACT OF POLITICAL RISKS: THEORETICAL SURVEY

2019 ◽  
pp. 30-40
Author(s):  
Fatih Ayhan
Keyword(s):  
Theoretical Background ◽  
Risk Indicators ◽  
Social Characteristics ◽  
Special Importance ◽  
Foreign Direct Investments ◽  
Host Countries ◽  
Religious Influence ◽  
Political Risks ◽  
Property Rights Protection ◽  
The One

Beyond well-known economic indicators, political structure and social characteristics of a host country also have special importance for investors’ decisions. Political risk indicators cover mainly democratization level, political/government instability, war, immigration problems, problems with neighboring countries, internal and external conflicts, corruption level, military and religious influence on politics, law and order, ethnics tensions, property rights protection, national security and geographic situation - all of these factors also deeply affect decisions on FDI. Also, some basic social characteristics for host countries can play the catalyze role for FDI, such as literacy rate, education opportunities etc. The aim of this study is to examine theoretically the relationship between political and economic risks on the one hand with FDI on the other. It is aimed to show the theoretical background for the political and economic risk factors. Statistical figures on the FDI trends worldwide will be also presented.

scholarly journals ECONOMIC AND STATISTICAL APPROACH TO THE PROCESS OF INTERNATIONAL INVESTMENT: RISKS AND PROSPECTS

2021 ◽  
Author(s):  
Tetiana Zinchuk ◽  
Tetiana Palamarchuk
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
National Economy ◽  
Direct Investment ◽  
Structural Changes ◽  
Statistical Approach ◽  
International Investment ◽  
International Investors ◽  
Effective Use ◽  
National Economies

The fact that Ukraine is involved in the worldwide process of globalization and integration intensifies the attraction of overseas capital, which is an important tool for structural changes in national economies, for replenishing the budgets of countries and ensuring their economic growth. The current economic development of Ukraine is a result of the lack of country’s own financial resources, which confirms the need to create a favourable investment environment and intensify international investment. In view of this, the essence of foreign investment has been considered; the main forms and modern approaches to the classification of foreign investment have been described. It has been highlighted that foreign direct investment is the most effective for further development of the national economy in the context of globalization. The main aspects that make Ukraine’s economy attractive for international investors have been identified. An economic and statistical approach has been used to analyze the volume of foreign direct investment in and from Ukraine and from the country in the dynamics as a whole, as well as in terms of individual countries. The orientation of foreign direct investment in certain types of economic activity has been analyzed; and the priority directions for foreign investment in the national economy have been determined. The transformational changes in the way how domestic statistical information related to foreign direct investment is displayed have been identified. It has been emphasized that currently the only body responsible for disseminating information related to international investment is the National Bank of Ukraine. The factors that affect foreign investment have been specified, as well as investment risks associated with the use of overseas capital in the country. It has been noted that the further implementation of Ukraine’s economic policy in the field of foreign investment is associated with the appropriate regulation of both attraction of investment and its effective use. Prospects for international investment in Ukraine have been highlighted.

2 The Nature and Significance of International Investment

2015 ◽  
Author(s):  
Salacuse Jeswald W
Keyword(s):  
Economic Growth ◽  
International Economic ◽  
International Investment ◽  
Government Officials ◽  
International Investments ◽  
Goods And Services ◽  
Corporate Executives ◽  
International Economic Cooperation ◽  
International Investors

This chapter explains the nature and significance of international investments and investors, and the fact that investment is fundamental to economic growth and to the provision of needed goods and services in any society. Topics covered include the meaning of investment; forms of investment; the nature of investors; the role of return and risk; the nature of international investment; forms of international investment; the nature and goals of international investors; and state interests in international investment. The chapter concludes by stating that government officials, corporate executives, and lawyers must approach investments not just within the framework of narrow investor interests but within the broader framework of international economic cooperation.

The Effects of Political and Economic Risk on FDI

2019 ◽  
pp. 44-63 ◽  
Author(s):  
Fatih Ayhan
Keyword(s):  
Economic Benefits ◽  
Theoretical Background ◽  
Risk Indicators ◽  
Social Characteristics ◽  
Special Importance ◽  
Foreign Direct Investments ◽  
Economic Risk ◽  
Host Countries ◽  
Property Rights Protection ◽  
The One

Foreign direct investments (FDI) are becoming the key element in achieving development in developing countries. On the global scale, FDIs reached the level of $1,75 trillion back in 2016. FDI also brings lots of economic benefits to host countries. However, beyond these economic indicators, political structure and social characteristics of a host country also have special importance for investors' decisions. Political risk indicators cover mainly democratization level, political/government instability, war, immigration problems, problems with neighboring countries, internal and external conflicts, corruption level, military and religious influence on politics, law and order, ethnics tensions, property rights protection, national security and geographic situation - all of these factors also deeply affect decisions on FDI. Also, some basic social characteristics for host countries can play the catalyzer role for FDI, such as literacy rate, education opportunities, etc. The aim of this study is to examine theoretically the relationship between political and economic risks on the one hand with FDI on the other. It is aimed to show the theoretical background for the political and economic risk factors. Statistical figures on the FDI trends worldwide will be also presented.

FDI, Industrialization, and Development

2017 ◽  
Author(s):  
Yilmaz Akyüz
Keyword(s):  
Industrial Policy ◽  
Transnational Corporations ◽  
Competitive Advantages ◽  
Policy Space ◽  
Management Skills ◽  
Host Countries ◽  
Strong Case ◽  
The Past ◽  
Advanced Economies ◽  
International Investors

Superior technology and management skills of transnational corporations (TNCs) can bring significant benefits to EDEs. However, they cannot be expected to pass willingly the competencies that bring them competitive advantages or act with a developmental perspective and help build potentially efficient local industries. Their contribution to industrialization and development depends very much on deliberate policies of host countries. Lessons from experience suggest that successful examples are found not among EDEs that attracted more FDI, but among those which used it effectively in the context of national industrial policy. However, the past two decades have seen a rapid erosion of policy space in EDEs as a result of bilateral investment treaties signed with more advanced economies, allowing significant leverage to international investors. There is a strong case for renegotiating or terminating them since they greatly compromise the ability of EDEs to benefit from FDI for industrialization and development.

FOREIGN DIRECT INVESTMENT IN SERBIA

2021 ◽  
pp. 253-265
Author(s):  
MILOŠ PJANIĆ ◽  
MIRELA MITRAŠEVIĆ
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Financial Markets ◽  
Direct Investment ◽  
Employment Growth ◽  
Home Country ◽  
New Technology ◽  
Foreign Direct Investments ◽  
Education Innovation ◽  
National Economies

In the process of globalization, the importance of foreign direct investment has changed significantly, because today they represent one of the most important factors of competitiveness, development and application of new technology, education, innovation and economic development. As a significant form of financing national economies, foreign direct investment is a form of investment that is realized outside the home country, where one of the most important goals of both developed and especially developing countries is to attract as much foreign direct investment. A large number of developing countries, including Serbia, have liberalized restrictions on foreign investment and free trade in the last two decades, liberalized national financial markets and begun privatization processes. Due to numerous problems and consequences of economic crises they have faced, many developing countries, as well as Serbia, view foreign direct investment as one of the most important factors for stimulating trade, employment growth, openness of national economies, and establishing overall macroeconomic stability. The aim of this paper is to point out the importance and dynamics of foreign direct investments in Serbia, as well as the key incentives for their attraction. Also, in addition to the theoretical review of foreign direct investments, the effects of foreign direct investments are presented in the paper.

CJEU Judgment in Case C-284/16 Achmea: Single Decision and Its Multi-Faceted Fallout

2019 ◽  
Vol 18 (1) ◽  
pp. 3-32
Author(s):  
Bartosz Soloch
Keyword(s):  
International Investment ◽  
The European Union ◽  
International Investments ◽  
Eu Member States ◽  
National Courts ◽  
International Investment Agreements ◽  
The One ◽  
The Relationship ◽  
Investment Agreements ◽  
The Eu

Abstract Recent decisions of European and national courts, as well as those of arbitral tribunals, concerning the Achmea saga seem to be plentiful enough to draw preliminary conclusions as to the relationship between EU law, intra-EU international investment agreements (IIAs) and the national laws of EU-Member States. In order to get the proper picture of the situation, however, it is necessary not only to analyse the recent decisions of the Court of Justice of the European Union (CJEU) and their consequences from these three perspectives, but, equally, to understand how they interact with each other. Such an analysis indicates the real possibility of the emergence of a rift between the practice of the EU and national courts rejecting the validity of investment arbitration agreements, on the one hand, and investment tribunals, on the other. In any case, such a divergence would put into question the IIAs’ claim to provide a stable regulatory framework for international investments in the EU, which, in turn, would strengthen the argument for termination of intra-EU IIAs.

International Investments and the European Challenge

1992 ◽  
Vol 24 (1) ◽  
pp. 83-94 ◽  
Author(s):  
M de Smidt
Keyword(s):  
Host Country ◽  
Foreign Direct Investments ◽  
Labor Costs ◽  
International Investments ◽  
The United Kingdom ◽  
The Pacific ◽  
The Usa ◽  
East German ◽  
The 1960S ◽  
Financial Transactions

The complicated pattern of foreign direct investments (FDI) is analyzed for the Single European Market. There are huge FDI flows from the USA and Japan. The Japanese are newcomers: they already made financial transactions through Luxembourg and are building up their logistic operations in the Netherlands. A new division of labor is presented, which includes the United Kingdom as a prime host country for reasons of language and low labor costs. Ireland, Catalonia, and some East German Lander may be the exception to the rule that investments are made in the core regions. A shift was seen in FDI during the 1960s to the Pacific Rim, the USA being a prime host country for FDI during the 1970s.

3 The Foundations of International Investment Law

2015 ◽  
Author(s):  
Salacuse Jeswald W
Keyword(s):  
World War Ii ◽  
International Law ◽  
International Investment ◽  
World War ◽  
International Investments ◽  
Customary International Law ◽  
Enforcement Mechanism ◽  
International Investment Law ◽  
General Principles Of Law ◽  
Investment Law

This chapter examines the state of customary international law governing international investments, that is, the law that exists in the absence of an applicable treaty. Following World War II, such law for most investors was incomplete, vague, contested, and without an effective enforcement mechanism, meaning that investors and their home governments needed to find another way to protect investments of their nationals. This would lie in negotiating investment treaties. Topics covered include state and investor interests shaping international investment law; the sources of international law; customary international law and general principles of law governing international investment; customary international law on expropriation and breach of state contracts; challenges to Western views on international investment law; and deficiencies of customary international law on investment.

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