Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘FDI’

How much of Europe does China own?

Posted by hkarner - 22. April 2019

Date: 21-04-2019
Source: BBC

China now has a majority stake in the Greek port of Piraeus

The European Union has introduced a new mechanism for screening foreign investment.

It’s widely believed to have been prompted by concerns over China’s economic ambitions in Europe.

It will allow the European Commission – the EU’s executive arm – to give an opinion when an investment „threatens the security or public order“ of more than one member state or undermines an EU-wide project such as the Galileo satellite project.

In March, the European Commission called China a „systemic rival“ and a „strategic competitor“. Den Rest des Beitrags lesen »

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Brexit deal ‚will cost UK £100bn‘ by 2030, research suggests

Posted by hkarner - 27. November 2018

Date: 26-11-2018
Source: BBC

The government’s Brexit deal would leave the UK £100bn a year worse off by 2030, analysis by the National Institute of Economic and Social Research (NIESR) has claimed.

The study commissioned by the People’s Vote, which wants a second referendum, said GDP would shrink by 3.9% annually.

„This is the equivalent of losing the economic output of Wales or the City of London,“ it said.

Chancellor Philip Hammond has said the deal is better than staying in the EU.

Approved by the EU on Sunday, the withdrawal agreement sets out the terms of the UK’s exit from the EU, including its £39bn „divorce bill“, citizens‘ rights and the Northern Ireland „backstop“ – a way to keep the Irish border open, if trade talks stall. Den Rest des Beitrags lesen »

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Putting FDI on the G20 Agenda

Posted by hkarner - 6. August 2018

Karl P. Sauvant

Karl P. Sauvant is Resident Senior Fellow at the Columbia Center on Sustainable Investment at Columbia University.

Axel Berger is a senior researcher at the German Development Institute.

With the right controls, foreign direct investment can be a reliable source of external finance to help countries meet their economic goals. But with many countries discouraging new FDI flows, rule-making and policy changes are urgently needed to help avoid costly investment wars.

NEW YORK – While much of the world’s attention is focused on the economic damage being wrought by US President Donald Trump’s trade wars, global trade’s twin – foreign direct investment – has largely been neglected. And yet, with FDI flows valued at $1.43 trillion in 2017 – on top of the $28 trillion already invested – how these flows are managed matters.

International investment has become an important source of external finance for many countries; for developing economies, in particular, FDI can exceed official development assistance by wide margins. But if FDI is to contribute meaningfully to economic growth and sustainable development, existing flows must increase even more. For that to happen, international investment policies need better coordination, and we believe that the G20 is the best forum to facilitate this process. Den Rest des Beitrags lesen »

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Nach Trumps Amtsanritt gingen Direktinvestitionen in den USA zurück

Posted by hkarner - 2. Juli 2017

2. Juli 2017, 14:01 derstandard.at

Im ersten Quartal um 40 Prozent tiefer als im Vergleichszeitraum 2016

Washington – Die Summe der Investitionen ausländischer Unternehmen in den USA ist zum Amtsantritt von Präsident Donald Trump massiv gesunken. Im ersten Quartal lagen die ausländischen Direktinvestitionen mit 83,6 Milliarden Dollar um fast 40 Prozent unter dem Niveau vor Jahresfrist, berichtet das deutsche Magazin „WirtschaftsWoche“ unter Berufung auf vorläufige Zahlen des US-Statistikamts Bureau of Economic Analysis. Deutsche Firmen hätten nur noch 992 Millionen Dollar in die Schaffung oder Erweiterung von Produktionskapazitäten investiert. Im Schlussvierteljahr 2016 seien es noch gut 1,41 Milliarden gewesen, im Quartal davor fast vier Milliarden Dollar mehr. Den Rest des Beitrags lesen »

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Greek Parties: Adjust Your Programs To What Voters Really Want!

Posted by hkarner - 13. März 2017

Friday, March 10, 2017, Observing Greece

A frequent experience with management consultants is that their beautifully phrased ideas and proposals, all in PowerPoint format, don’t work so well during implementation. Many times the reaction to that is to involve the consultants even more, based on the belief that, eventually, their beautifully phrased ideas and proposals simply had to show results.

Every once in a while a common sense manager asks a different kind of question, namely: „If we want to increase efficiency in, say, Operating Division A, why don’t we ask the people concerned how they think we could accomplish that?“ More often than not, the result of such common sense is miraculous.

The non-profit think tank Dianeosis made a survery where they tried to find out „What Greeks believe“. The results are astonishing! Here are some excerpts: Den Rest des Beitrags lesen »

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Foreign Investment – A Long Shot?

Posted by hkarner - 16. Januar 2017

Friday, January 13, 2017, Observing GreeceKastner

This rather pessimistic commentary by Alexis Papachelas of the Ekathimerini concludes with the following paragraph:

„Greece has become cheap, it has potential and a capable manpower; but in order to lure investors it will have to implement reforms and inspire confidence, and it will need a government that speaks the same language as investors.“

There, in only one sentence, everything is said! I would only add: Greece also needs a society which sees the positive aspects of foreign investments.

The economic ingredients all speak in favor of Greece: yes, Greece has become rather cheap and, of course, Greece has a capable manpower and potential. So why are foreign investors not lining up to put their money into the Greek economy, into real investments instead of only financial speculations? Den Rest des Beitrags lesen »

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The Retreat of Financial Globalization?

Posted by hkarner - 5. November 2016

By on November 3, 2016  RGE EconoMonitorJoyce cc

Matthieu Bussière and Julia Schmidt of the Banque de France and Natacha Valla of CEPII (Centre d’Etudes Prospectives et d’Informations Internationales) compare the record of the period since 2012 with the pre-crisis period and highlight four conclusions. First, the retrenchment of global capital flows that began during the crisis has persisted, with gross financial flows falling from about 10-15% of global GDP to approximately 5%. Second, this retrenchment has occurred primarily in the advanced economies. particularly in Europe. Third, net flows have fallen significantly, which is consistent with the fall in “global imbalances.” Fourth, there are striking differences in the adjustment of the various types of capital flows. Foreign direct investment has been very resilient, while capital flows in the category of “other investment”—mainly bank loans—have contracted substantially. Portfolio flows fall in between these two extremes, with portfolio equity recovering much more quickly than portfolio debt. Den Rest des Beitrags lesen »

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Four Fallacies About Trade and Globalization

Posted by hkarner - 29. Oktober 2016

Date: 28-10-2016
Source: YaleGlobal

Trade – along with the accompanying fears over foreign competition, job loss and reduced wages – is a hot issue for the US presidential campaign and elections elsewhere. Ajai Gaur and Ram Mudambi, professors of international business strategy at Rutgers University and Temple University, analyze four fallacies associated with trade, globalization and manufacturing in advanced economies. Manufacturing jobs are no longer the basis of US prosperity. “Most advanced economies have become primarily service economies,” they explain. “Rich countries are service economies, focused on finance, engineering, design and health care, and this is dictated by their comparative advantage.” Also, imports do not make a country poor, and the most competitive companies both import and export to attract foreign investment and capital. Foreign firms can provide immense benefits for the economies of other nations, and the global supply chain allows domestic firms to become exporters by proxy without the risks of international activity. Gaur and Mudambi urge politicians to reject the fallacies and citizens to make informed decisions before voting. – YaleGlobal

Fear of trade overlooks that most value creation in advanced economies is based on services, not manufacturing

mfg-emplomentNEWARK, PHILADELPHIA: Trade typically figures prominently in US presidential election, and 2016 is no exception. While campaigning, politicians tend to adopt anti-international business positions that are theoretically unsound and lack empirical evidence.

Four fallacies underline these common political arguments.

Fallacy 1: Manufacturing jobs are the basis of American prosperity.

Fallacy 2: Imports make us poorer.

Fallacy 3: Success of foreign firms always helps foreign countries, success of US firms always helps the US economy.

Fallacy 4: To export, firms must sell to buyers in foreign countries.
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Superstar companies are good at everything, including pushing the boundaries

Posted by hkarner - 18. September 2016

Date: 15-09-2016
Source: The Economist
Subject: Downsides: The dark arts

COMPANIES ARE BY nature competitive. That is mostly to be welcomed, but sometimes their competitive instincts play out in less welcome ways as they engage in some of the darker arts of management. The two most obvious ones are to pay as little tax as is legally possible, and to lobby governments and a variety of other bodies to gain an advantage over rivals. To a greater or lesser extent all companies do this. The big difference is that the superstar companies, being good at everything they do, are also much better than the rest at practising these dark arts and taking them mainstream.

This raises three worries. The first is that they will keep getting better at them, applying the same creative excellence to rule-bending as they do to running their business in general. Second, superstars might use the combination of these and other skills to build up impregnable advantages, giving them growing monopoly power. Third, as their businesses become more mature, they may come to rely increasingly on those dark arts. Den Rest des Beitrags lesen »

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How Lowering Trade Barriers Can Revive Global Productivity and Growth

Posted by hkarner - 21. Juni 2016

Posted on by iMFdirect

By Era Dabla-Norris and Romain Duval

Weak productivity growth in many advanced and emerging market economies in the wake of the global financial crisis is raising concerns about future growth prospects. New research indicates that easing barriers to international trade and foreign direct investment (FDI) could boost productivity and output.

Trade liberalization efforts have been stalling, but a push toward new agreements promises to reverse the trend. The recent Trans-Pacific Partnership (TPP) agreement between the United States, Japan, and 10 other Pacific Rim countries, along with the ongoing negotiations between the U.S. and Europe on the Transatlantic Trade and Investment Partnership (TTIP), place productivity and growth high on policymakers’ agendas. Past multilateral trade liberalization rounds have helped boost productivity, so these recent agreements—albeit not global—could do the same, given their broad geographic coverage, both as a percentage of total world GDP and total world trade.

As the shown below in Chart 1, even in advanced economies, which have already liberalized tariffs in the past, further reductions in nontariff/regulatory barriers to trade and FDI offer scope for additional productivity gains. Den Rest des Beitrags lesen »

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