International Investment Essay examples - 1231 Words

In 2002, imports to the United States from developing nations totaled a whopping $317 billion. (The United States is the single largest market for developing nations goods.) Exports from the U.S. to those nations totaled $130 billion. Both imports and exports are important, but look at the difference, that is, the trade deficit that resulted for the United States: $187 billion. Thats 44 percent of the entire trade deficit that the United States ran last year with all nations. In other words, with developing countries, the United States buys a good deal more than it sells. Consider a few examples. Last year, the Philippines sold exports worth $11 billion to the United States and bought American imports worth $7 billion, for a deficit (to†¦show more content†¦An academic paper published earlier this year by Geert Bekaert of Columbia University and two colleagues found that equity market liberalizations, on average, lead to a one percent increase in annual real economic growth over a five-year period. That figure, say the authors, is surprisingly large (after all, GDP growth averages only about 3 percent a year). Liberalization means that foreign investors can invest in the securities of other countries -- their stocks and bonds. The researchers also discovered that the countries that gained the most from liberalization were those -- such as developing nations -- that were furthest behind but moving forward in implementing macroeconomic reforms. For example, in the five years after liberalization, GDP growth in India averaged 5.7 percent annually, compared with 3.2 percent in the five years before liberalization. Thailands average five-year growth was 8.7 percent after liberalization of its securities markets and 3.5 percent before. Of course, not all developing nations enjoyed such increases, but the average country did, and the results are powerful. Again, investment is a two-way street. Because the United States is a relatively stable and safe place to invest, it provides an enormous haven for capital investments (in stocks, bonds, real estate, and whole businesses) from abroad. Those capital inflows provide the necessaryShow MoreRelatedInternational Investment Law : An Alternative For Investment Protection And Promotion Of Investment3542 Words   |  15 PagesBITs International investment law was developed as a response to the inadequacies of the customary international law in protecting foreign property by providing responsibility to host state.[footnoteRef:2] Most of capital exporting countries was developed states which required better market access commitments from capital exporting countries, and also better standards of investment protection.[footnoteRef:3] The failure to conclude multilateral investment agreement forced developed states to findRead MoreInternational Financial Real Estate Investments1941 Words   |  8 PagesIntroduction International institutional real estate investments are driven by the potential to increase the risk/return ratio of a portfolio through investing in countries with different political and economic environments. This allows investors to add assets to their portfolio with low or negative correlation with other assets classes and provides increased gains associated with Modern Portfolio Theory (MPT). Although the majority of recent literature has focused on the benefits of portfolioRead MoreBackground Of International Investment Protection3192 Words   |  13 PagesI. Background to International Investment Protection During industrialisation, Western European Countries and United States, which has huge capital surplus, started investing massively in less developed countries in the form of Foreign Direct Investment. There was obviously an imbalance of power between the investing countries and the host countries at that time. The investing countries expected that their investment and property be protected and in case they suffered any injury or incurred anyRead MoreCase Study : International Real Estate Investments1140 Words   |  5 PagesOf The Problem Equity International (EI) through its chief strategic officer Thomas McDonald is looking for new investment opportunities in Colombia, which has shown a tremendous economic improvement in the last 10 years. In general terms, EI has the expertise and know-how on international Real Estate investments but is not totally sure that right now is the best time to put capital on risk in that country, based on its previous negative experience on Venezuelan investment. Mr. Mcdonald s has toRead MoreGlobal Foreign Direct Investment And International Production3809 Words   |  16 Pagesa. Set out a clear summary of key changes relating to global foreign direct investment and international production in 2014 over the previous year. You should include an accurate description of salient trends in the data e.g Greenfield investment and cross – border MA. (Word-guidance 750) By Geography ‘Global FDI flows rose by 9 percent in 2013 to $1.45 trillion from $1.33 trillion in 2012’ (UNCTAD, 2014) Between 2012 and 2013, FDI inflows increased in all major economies - developed, developingRead MoreInternational Trade And Foreign Investment1979 Words   |  8 PagesBetween International Trade and Foreign Investment Trade and investment are highly connected that could be illustrated as two sides of the same coin. Companies conduct cross-border trade to supply their foreign investment, and they invest abroad to bolster their trade. Moreover, in the liberalisation era, while investors produce and consume both goods and services, an open trading system will provide a bright investment climate. Equally important, international trade and foreign investment haveRead MoreGlobalization And International Trade And Investments Aided By Information Technology1009 Words   |  5 Pagesbeing promoted and exchanged between nations, which creates relationships. Globalization is a process of intercommunication and integration within people, companies, and different nation’s governments. Globalization is processed by international trade and investments aided by information technology. This process has many effects on a nation. It affects the environment, culture, political systems, economics, and d evelopment. In addition to human’s physical wellbeing in societies around the world.Read MoreInternational Investment in the United States Insurance Industry3514 Words   |  15 Pagesintegration of the global economy has strengthened the international integration of goods, technology, labour and capital. This process of cross-border restrictions eliminations on international capital flows has increased the growth of foreign direct investment (FDI) activity. Many countries make every effort to attract FDI because it will bring a substantial growth to their economy, in addition to its function as the principal vehicle of international capital movement. There is a widely shared viewRead MoreInternational Economic Exchange And Foreign Investment1656 Words   |  7 Pagesof wealth and consolidation of power depends on the type of international economic exchange the country is involved in as well as the nature of the state. In this essay, I consider trade, currency exchange and foreign investment as the primary economic exchanges that countries are involved in, as well as the different natures of states such as developing economies and industrialized nations. I argue that countries involved in international economic exchange will have to compromise between the accumulationRead MoreAn Analysis Of An International Portfolio Investment For Board Of Directors1730 Words   |  7 Pages 3003IBA, Project – 2014: An analysis of an international portfolio investment for board of directors. Jesus David Castano Cuadro Student ID: S2916020 Word Count: 1526 Griffith Business School Nathan Campus. October 2014 Table of contents 1. Predicting the expected spot exchange rate 1 1.1 Australian Dollar 1 1.2 Chinese Renminbi 2 2. Australia VS. China 4 2.1 Financial sector 4 2.2 Consistent economic growth 5 2.3 A politically stable