FIN 621 Chapter Notes - Chapter 15: Free Trade, Credit Risk, Capital Market
6 Dec 2014
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Document Summary
Fdi lows represent new additions to the existing stock of fdi. Several developed countries are dominant sources of fdi outflows. Negative entry in the outflows line year reduced absolutely the stock of fdi abroad. Industrial countries account for 90% of total worldwide fdi outflows during the past decade: multinational corporations based in these countries have significant comparative advantages in fdi. Locational advantages for fdi over other countries: multinationals are generally drawn on the production side to efficient foreign sites of manufacturing. China emerged second most important host country for fdi o o. Economic transition low wage labor was primary magnet for foreign direct investment. Increasing foreign direct investors strategy is to tap the huge and expanding consumer markets within. Fdi stocks accumulation of previous fdi flows: overall cross border production activities of mncs best captured, outward fdi abroad o. Fdi flows and accumulated stocks ate concentrated within each of these 3 major economic centers.
