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.

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.

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.

scholarly journals Exchange rate volatility and its effect on intra-East Africa Community regional trade

2021 ◽  
Vol 4 (9) ◽  
pp. 43
Author(s):  
Thomas Mosbei ◽  
Silas Kiprono Samoei ◽  
Clement Cheruiyot Tison ◽  
Edwin Kipyego Kipchoge
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
East Africa ◽  
Money Supply ◽  
Direct Investment ◽  
Structural Adjustment ◽  
Exchange Rate Volatility ◽  
Fixed Effect Model ◽  
Foreign Direct Investments ◽  
Regional Trade

East Africa Community exchange rate volatility spiraled up when the countries adopted the Structural Adjustment Policies in early 1980s. The question that remains unanswered is whether exchange rate volatility hinders or promotes trade. The objective of this study was to determine the effect of exchange rate volatility and its effect on Intra-East Africa community regional trade. Unit root tests results indicated that some of the variables were stationary at levels and on first difference, all variables were I(1). Differenced panel data was fitted into the General Autoregressive Conditional Heteroscedasticity model to measure volatility. Hausman test showed that the fixed effect model was appropriate exchange rate, money supply, population and foreign direct investment significantly determines intra-East Africa Community regional trade. It was concluded that exchange rate volatility is observable in the Intra-East Africa region and further, exchange rate, money supply, population, and foreign direct investment significantly influenced intra-EAC regional trade. It is recommended that EAC member states should formulate policies that ensures exchange rate stability in the region to reduce unpredictability of exchange rate. Policies should be enacted to guarantee adequate money supply and encourage foreign direct investments.

scholarly journals Foreign Direct Investment in non-urban public transport in Visegrad Group (V4) countries

2018 ◽  
Vol 2018 (3) ◽  
pp. 8-20
Author(s):  
Zbigniew Taylor ◽  
Ariel Ciechański
Keyword(s):  
Foreign Direct Investment ◽  
Czech Republic ◽  
Public Transport ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Comprehensive Overview ◽  
Urban Public Transport ◽  
Visegrad Group

The purpose of this study is to investigate the changes and draw generalizations relating to the processes of foreign direct investments (FDI) in the non-urban public transport in the countries of the Visegrad Group (Poland, Czech Republic, Slovakia and Hungary), after 1989. The processes observed lead mainly to the so-called brownfield investments and cover both bus operators, as well as rail carriers. The focus is placed on comprehensive overview of the activities of the largest investor (the German national railway DB) existing in all four countries of the V4 Group, and leading railway services in the most of the described countries.

scholarly journals Contemporary trends in global foreign direct investment flows

2015 ◽  
Vol 67 (1) ◽  
pp. 79-105 ◽  
Author(s):  
Sandra Stojadinovic-Jovanovic
Keyword(s):  
Foreign Direct Investment ◽  
Detailed Analysis ◽  
Direct Investment ◽  
Continuous Monitoring ◽  
Developed Countries ◽  
Foreign Direct Investments ◽  
Less Developed Countries ◽  
Global Level ◽  
Investment Policies ◽  
Global Flows

It is not necessary to explain the importance of foreign direct investment, particularly in less developed countries, bearing in mind the numerous theoretical and empirical papers that confirm their importance and effects that the inflow of these investments in the country can make. The movement of these investments on the global level is characterized by significant changes, especially in recent years, in their volume, geographically distribution as well as in the conditions in which they take place - conditions of instability and crisis interruptions, growing regional and interregional integration and altered foreign direct investment policies. Trends in their movements are mirrored in individual countries, stressing on the need for their continuous monitoring and detailed analysis. Therefore the paper will identified the key trends that characterize the contemporary global flows of foreign direct investments.

Identifying the degree of dependence of foreign direct investments on adjusted net savings of the recipient country

2021 ◽  
Vol 39 (6) ◽  
Author(s):  
Larysa V. Rudenko-Sudarieva ◽  
Yuliia A. Shevchenko
Keyword(s):  
Foreign Direct Investment ◽  
Social Welfare ◽  
Direct Investment ◽  
Recipient Country ◽  
Foreign Direct Investments ◽  
The Sustainable Development ◽  
The Social ◽  
Social Components ◽  
Adjusted Net Savings ◽  
Macroeconomic Indicator

Due to the loss of the dominance of GDP as the main macroeconomic indicator of the social welfare, this study uses a more accurate and realistic indicator – adjusted net savings (ANS). Based on the economic and mathematical modelling, the study suggests a new method for identifying the value of adjusted net savings as a stimulating factor to increase the inflow of transnational capital to the recipient country. After assessing the current environment of investment attractiveness of recipient countries, attention was paid to identifying the degree of dependence of foreign direct investment on adjusted net savings. The novelty of this study is conditioned by the search and identification of the dominant macroeconomic indicator of investment attractiveness of the recipient country. Such an indicator will most fully reveal the conditions and prospects for attracting investments. The aim of this study was to consider alternative approaches to the country's development and to demonstrate the existence of a functional relationship between the volume of foreign direct investment and adjusted net savings. The purpose of this study is to build models of the dependence of foreign direct investment on adjusted net savings of the recipient country as an alternative indicator that most widely reveals the level of social welfare and economic development of the studied countries. Adjusted net savings consist of elements that cover the sustainable development of society, namely the economic, environmental, and social components. As a result, using the correlation and analysis of variance, the existence of dependence and its degree of influence on the volume of foreign direct investment on the adjusted net savings of the recipient country has been proved.

Doing Business in Africa and African Business Opportunities

2014 ◽  
pp. 119-166
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
African Countries ◽  
Performance Levels ◽  
Doing Business ◽  
Business Opportunities ◽  
And Performance

This is a key chapter in this book. It is central to the book’s message and explains fully the concept “doing business in Africa.” The chapter further classifies African business opportunities into enabling and specific opportunities. Specific opportunities are precise areas of Foreign Direct investments. The enabling opportunities are resources and institutions that make investing and doing business in Africa possible and easier. These resources and institutions include USA, European, Chinese, Brazilian, and Indian strategies to promote investment and “doing business in Africa.” These strategies further include linkages and several USA, European, Indian, Brazilian, and Chinese institutions focusing on promoting African trade and business. Moreover, the various perspectives of Foreign Direct Investment in Africa are elucidated and African countries are classified according to their economic development and performance levels.

On Some Aspects of State-Owned Enterprises' Foreign Direct Investments (SOEs' FDI)

2017 ◽  
pp. 118-140 ◽  
Author(s):  
Marta Anna Götz ◽  
Barbara Jankowska
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Qualitative Methodology ◽  
Descriptive Analysis ◽  
Foreign Direct Investments ◽  
Eastern European ◽  
International Engagement ◽  
Critical Literature

This chapter seeks to enrich the existing literature by discussing the broader context of international engagement of state-owned enterprises (SOEs). It discusses the rationale for examining foreign direct investment (FDI) done by SOEs and outlines the challenges which need to be addressed in this respect. It provides a brief overview of FDI carried by Polish SOEs. The authors applied the qualitative methodology of critical literature review and descriptive analysis of internationalization of Polish state-controlled firms. This chapter can contribute to the current studies devoted mainly to Chinese or other Asian emerging state-controlled multinationals by adding the Central and Eastern European (CEE), in particular the Polish, perspective. It concludes that given the well-recognised peculiarities of such entities adequate framework needs to be adopted to explore their foreign activities. The Polish multi-case study encompassing nine entities demonstrates that the group can be pretty heterogeneous and indeed can combine the specificity of multinational enterprises (MNEs) and SOEs.

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