DEVS 310 Lecture Notes - Lecture 7: Foreign Direct Investment, Miracle Drug, Developing Country
19 Mar 2016
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Document Summary
Week #7 foreign direct investment: the motor of development. Reading #2 rethinking foreign investment for development (gallagher and. Zarsky: the authors examined the article about fdi, once dubbed the "miracle drug" and a jump-start to economic growth and sustainable industrial development, especially in developing countries. The belief was that they would additionally boost environmental performances with cutting edge/ cleaner technologies. Enabling the environment with strong legal and political institutions with transparency, property protection and financial stability for foreign investors. Investment agreements global, regional, bilateral should aim to make the world safe for fdi (protections for foreign investors): fdi is not a miracle drug for economic development, sustainable environment etc. Fdi in developing countries: fdi must have an equity share of 10% or more. Enterprises operate their finances via equity, debt, multinational financial institutions. Tncs top 10 and 90% are from usa, japan and european union. the internationalization of production is key of globalization.
