Planning Foreign Direct Investment Projects

2018 ◽  
pp. 35-59
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Investment Project ◽  
Foreign Direct Investments ◽  
Economic Study ◽  
Factors Affecting ◽  
Investment Projects ◽  
The Road ◽  
Road Map ◽  
Country Selection

This chapter develops a framework for the whole book and defines a road map for the chapters that follow it. However, in order to follow the road map or to go through the stages of analyses defined for a comprehensive economic study called a feasibility study for an investment project, the starting point is to select a country for the foreign direct investment contemplated. Therefore, country selection is the first step for starting a comprehensive economic study for planning and analyzing foreign direct investments. For this reason, before starting to plan, analyze, and evaluate a foreign direct investment, a country has to be determined for the direct investment project intended. As such, factors affecting country selection in terms of opportunities and risks related to alternative countries are specified and elaborated first and then put together in an example to develop a methodology for selecting a host country for the direct investment planned abroad. Country selection is based on a procedural methodology that goes through, firstly, a scanning stage that aims at identifying possible countries for investment; secondly, eliminating less desirable countries for determining possible candidates; and finally, choosing the most adequate country for investment through a so-called opportunity-risk matrix.

Evaluating Foreign Direct Investment Projects

2018 ◽  
pp. 193-239
Keyword(s):  
Foreign Direct Investment ◽  
Host Country ◽  
Direct Investment ◽  
Home Country ◽  
Investment Project ◽  
Cash Flows ◽  
Parent Company ◽  
Investment Projects ◽  
Country Level ◽  
At Home

As explained in the foregoing chapter, once the relevant cash outflows and inflows associated with a foreign direct investment project are estimated so as to calculate the net cash flows, the desirability of the investment project should then be determined in terms of its economic profitability. Therefore, in this chapter the methods widely used in evaluating investment projects are discussed and their advantages as well as shortcomings are highlighted. Later in the chapter, evaluating foreign direct investment projects from the viewpoint of the parent company is elaborated in terms of profit and/or income transferred to the home country. The same investment evaluation techniques were applied to the net cash flows transferred to the home country of the parent company. The possible income and/or dividends to be remitted to the home country of a parent company are identified and discussed so as to reflect the viewpoints of investing parent companies when planning foreign direct investments. This two-level evaluation approach is generally followed in practice to make sure that direct investments are profitable at both host and home country levels, since an investment project that is not profitable at host country level would not be profitable at home country level either or a project that is profitable at host country level may not be profitable at home country level.

scholarly journals Protection of National Sovereignty and Hindering Foreign Investment

2017 ◽  
pp. 1-14
Author(s):  
Badreddine Berrahlia ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Foreign Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Business Law ◽  
National Sovereignty ◽  
Investment Projects ◽  
Recent Debate ◽  
The Impact

The article explores the recent debate regarding the rules of sovereignty and the need to acquire technology through Foreign Direct Investment (FDI) in relation to the Algerian Business Law. The article explores the 51/49 rule as an obligatory condition for direct international partnerhip projects, which requires a majority of Algerian ownership of at least 51 percent in all foreign direct investment projects (FDIP). The current research also investigates the impact of the 51/49 rule on the inflows of the foreign direct investments in Algeria as well as some other countries. The research concludes that there is no evidence that the amendment of the 51/49 rule would lead to technology transfer through the FDI.

Determinants of foreign direct investment and entry modes of Polish multinational enterprises: A new perspective on internationalization

2014 ◽  
Vol 47 (3-4) ◽  
pp. 365-374 ◽  
Author(s):  
Oskar Kowalewski ◽  
Mariusz-Jan Radło
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Evolutionary Model ◽  
Foreign Direct Investments ◽  
Manufacturing Companies ◽  
Entry Modes ◽  
Investment Projects ◽  
Strategic Assets ◽  
Firm Data

This study uses firm data to examine the locational trends of foreign direct investment projects undertaken by Polish companies. The findings of the study are consistent with the evolutionary models of internationalization. Companies in the early stages of internationalization are motivated by markets and resource seeking, whereas efficiency seeking and strategic asset seeking are significant motivators in the advanced stages of internationalization. However, our results with respect to Polish cross-border acquisitions by service companies and greenfield foreign direct investments by industrial or manufacturing companies did not confirm the evolutionary model findings. We found evidence that, in both cases, investments are motivated by the need for efficiency or strategic assets.

Market Analysis

2018 ◽  
pp. 60-109
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Investment Project ◽  
Market Analysis ◽  
Target Market ◽  
Foreign Direct Investments ◽  
Purchasing Behavior ◽  
Demand And Supply ◽  
Final Point ◽  
Financial Analyses

The chapter is devoted to the market analysis as the first stage of the methodology proposed for planning and analyzing foreign direct investments. The market analysis that precedes technical and financial analyses stages of the comprehensive economic study for planning and analyzing foreign direct investments aims at determining whether or not the market for a direct investment project is large enough. Therefore, all studies, work, and activities involved in the market analysis stage as explained in the chapter are confined to determining whether or not the target market for the product to be manufactured through a foreign direct investment is sufficient enough. For this purpose, the essential points to be considered for analyzing the competitive market environment in terms of demand and supply conditions of the market as well as purchasing behavior of consumers are explained step by step. Finally, how a marketing strategy could be developed on the basis of the information regarding the demand and supply sides of the target market is discussed that what possible market share might be captured is elaborated as the final point of the market analysis.

scholarly journals Protection of National Sovereignty and Hindering Foreign Investment

2018 ◽  
pp. 1-14
Author(s):  
Badreddine Berrahlia ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Foreign Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Business Law ◽  
National Sovereignty ◽  
Investment Projects ◽  
Recent Debate ◽  
The Impact

The article explores the recent debate regarding the rules of sovereignty and the need to acquire technology through Foreign Direct Investment (FDI) in relation to the Algerian Business Law. The article explores the 51/49 rule as an obligatory condition for direct international partnerhip projects, which requires a majority of Algerian ownership of at least 51 percent in all foreign direct investment projects (FDIP). The current research also investigates the impact of the 51/49 rule on the inflows of the foreign direct investments in Algeria as well as some other countries. The research concludes that there is no evidence that the amendment of the 51/49 rule would lead to technology transfer through the FDI.

scholarly journals The Effect of China and the Factors Affecting Foreign Direct Investments in Asean Countries

2013 ◽  
Author(s):  
Koy Pei Wen ◽  
Mohamed Hisham Dato Hj Yahya ◽  
Roslinda Rahman ◽  
Abdul Razak Abdul Hadi
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Direct Investment ◽  
World Trade Organisation ◽  
Market Size ◽  
Foreign Direct Investments ◽  
Vector Autoregressive ◽  
Factors Affecting ◽  
Asean Member ◽  
Asean Countries

Foreign direct investment (FDI) plays an important role in bolstering economic growth. It acts as a pillar in supporting the industrialization and economic development of countries. The objectives of this study are to: (a) Recognise factors aff ecting FDI in countries in the Association of Southeast Asian Nations (ASEAN) region and (b) examine the eff ect of China’s entry into the World Trade Organisation (WTO) on the FDI in ASEAN countries. The Vector Autoregressive method (VAR) was applied to establish the factors that had signifi cant impacts on FDI infl ows over the period 1980–2010 for these countries. Apart from the conventional variables, such as market size, labour cost, interest rates, exchanges rates, corporate tax rates, and degree of openness, this study incorporates another variable, that is, the event of China joining the WTO. This is to determine whether the entry of China into WTO had any impact on FDI in the ASEAN region. The result reveals that, fi rstly, only market size is not a signifi cant factor in determining the FDI infl ows for all the ASEAN countries being studied (i.e. Indonesia, Malaysia, Philippines, Singapore and, Thailand). Secondly, most of the ASEAN member countries’ FDI are infl uenced by China’s entry into WTO in 2001.   Keywords: China, ASEAN, WTO, VAR, Foreign direct investment.

Economic and legal instruments for the realization of foreign direct investment in infrastructure sectors of the economy

2020 ◽  
pp. 47-55
Author(s):  
Orshanska Marіana
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
High Growth ◽  
Well Being ◽  
Gradual Improvement ◽  
Fdi Inflows ◽  
Investment Projects ◽  
Analysis And Synthesis ◽  
High Level ◽  
Fdi Attraction

The purpose of the article is to determine the nature, characteristics and keyproblems of the main types of economic and legal instruments for the realizationof foreign direct investment (FDI). the methodological basis of the study is asystematic approach to the processing and compilation of statistics and indicators,as well as methods for their comparison, analysis and synthesis and a method offorecasting decisions on the use of investment potential to increase the attractivenessand volume of FDI attraction. The scientific novelty of the research lies in theanalysis of greenfield and brownfield strategies as the main forms of FDIimplementation, the disclosure of the content and interpretation of data on thereal state of FDI attraction, the search for opportunities to improve the investmentclimate and effective mechanisms for attracting foreign investors. conclusions. Itis confirmed that the investment attractiveness and rating of the country in theinternational market are the main factors for attracting investors. Inaccessibleinfrastructure, inefficient judicial system, high level of corruption and imperfectlegislation are the main obstacles that need to be overcome in order to attractforeign investors’ funds, providing a full package of assistance and support ateach stage of the implementation of investment projects. Greenfield and brownfield(M&A) are the most effective forms of FDI in order to achieve high growth ratesof the domestic economy, improve the level of population well-being andinternationally enter Ukraine. An analysis of the statistics on the effectiveness ofinnovative enterprise development projects, the characteristics of economic andlegal instruments indicate the gradual improvement of the investment climate andthe promotion of FDI inflows into the region’s economy through the implementationof greenfield and brownfield strategies. Examples of effective implementation ofthese strategies in the creation of new enterprises, companies of foreignrepresentation, which are expanding their capacity and entering new domesticmarkets are given. Examples of the brownfield strategy have been analyzed torestart existing and high-quality structural and organizational changes in inefficiententerprises, which have given impetus to improving the economic environment,investment attractiveness of the economy of the region and the country as a whole.

The IFLA Global Vision Project in Zimbabwe: Towards a Unified Field Road Map for Libraries

Mousaion ◽  
2020 ◽  
Vol 37 (2) ◽  
Author(s):  
Collence Takaingenhamo Chisita ◽  
Nyarai Patience Chibanda
Keyword(s):  
Economic Transformation ◽  
International Federation ◽  
Access To Information ◽  
Factors Affecting ◽  
The Road ◽  
Unified Field ◽  
Road Map ◽  
Library Associations ◽  
Global Vision ◽  
Library Profession

The development of libraries in any country is critical for its socio-economic transformation especially during this 21st century era where access to information and knowledge underpins development. The International Federation of Library Associations and Institutions (IFLA) launched the Global Vision Project in 2017 as a way of strengthening library throughout the world. The project has seen over 190 countries participating worldwide. For most nations, especially those in the developing countries, this has indeed created platforms for strong and united library associations that are powering literate, informed and participative societies. A number of countries in Africa including Zimbabwe have taken the initiatives to participate in the IFLA Global Vision. This article seeks to examine the challenges and opportunities   for librarians in Zimbabwe in building a united library field. It will also scrutinize the road travelled by librarians in Zimbabwe in their pursuit of a vision to reposition their libraries on the global library landscape. The   article will also study the factors affecting the development of a unified library sector in Zimbabwe. It will also explore how the national professional association Zimbabwe Library Association (ZIMLA) can contribute towards a unified library profession through collaboration. The article also proposes a strategy to enhance cooperation among librarians in Zimbabwe.

scholarly journals Causal Links between Trade Openness and Foreign Direct Investment in Romania

2021 ◽  
Vol 14 (3) ◽  
pp. 90
Author(s):  
Malsha Mayoshi Rathnayaka Mudiyanselage ◽  
Gheorghe Epuran ◽  
Bianca Tescașiu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Test Procedure ◽  
Real Effective Exchange Rate ◽  
Foreign Direct Investments ◽  
Causality Test ◽  
Fdi Inflows ◽  
Distributed Lag ◽  
Long Run

In this increasingly globalized era, foreign direct investments are considered to be one of the most important sources of external financing for all countries. This paper investigates the causal relationship between trade openness and foreign direct investment (FDI) inflows in Romania during the period 1997–2019. Throughout this study, Trade Openness is the main independent variable, and Gross Domestic Product (GDP), Real Effective Exchange Rate (EXR), Inflation (INF), and Education (EDU) act as control variables for investigating the relationships between trade openness (TOP) and FDI inflow in Romania. The Auto Regressive Distributed Lag (ARDL) Bounds test procedure was adopted to achieve the above-mentioned objective. Trade openness has negative and statistically significant long-run and short-run relationships with FDI inflows in Romania throughout the period. Trade openness negatively affects the FDI inflow, which suggest that the higher the level of openness is, the less likely it is that FDI will be attracted in the long run. The result of the Granger causality test indicated that Romania has a unidirectional relationship between trade openness and FDI. It also showed that the direction of causality ran from FDI to trade openness.

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.

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