The document provides an overview of international economics relationships and international trade and development. It discusses the definition of international economics relationships and why countries engage in them. Countries generally participate in international economics relationships through trade, finance, investment, labor/human capital, and science/technology. The document also examines different international trade theories and the role of international trade in economic development. It outlines some benefits and risks of international trade, as well as common trade barriers like tariffs, quotas, subsidies, and embargoes. The World Trade Organization and its role in facilitating international trade is also summarized.
The given PPT consist of the details about Globalisation,international business and international marketing along with the difference between TNC's & MNC's
Meeting 1 - Introduction to international economics (International Economics)Albina Gaisina
This document provides an introduction and overview of the scope of international economics. It discusses key concepts like globalization, patterns of trade, and different economic institutions. It also summarizes different theories of international trade, including absolute advantage, comparative advantage, and theories exploring the effects of technology and scale economies on trade patterns. Modern analyses use econometrics to identify various trade factors. The document also briefly mentions terms of trade, infant industries, and debates around trade policies.
This document discusses strategies for international business expansion and country evaluation and selection. It begins by outlining the objectives of analyzing national economies before expanding internationally. It then defines international and global strategies, and describes the differences between the two. Several methods for entering foreign markets are presented, including exporting, licensing, franchising, joint ventures, strategic alliances, and direct investment. Key economic indicators for preliminary country analysis are outlined, including GDP, income levels, income distribution, consumption patterns, population trends, sector analysis, inflation rates, external debt, exchange rates, and financial system development.
Trade barriers in International BusinessCitibank N.A.
This document discusses governmental trade barriers and reasons for their use. It outlines both economic and non-economic reasons for governments to intervene in trade, such as protecting infant industries, maintaining employment, and preserving national identity. Common trade barriers include tariffs, quotas, subsidies, and embargoes. Tariffs directly affect prices through import or export taxes, while non-tariff barriers can influence prices or quantities through measures like import quotas or subsidies. In general, governments employ various trade restrictions and supports to influence their country's trade relationships and performance for both economic and strategic policy reasons.
GLOBALIZATION CHAPTER 1 INTERNATIONAL BUSSINES BBA 5TH UOGRashid Gorsi
This document provides an overview of globalization and international business. It discusses the benefits of international business such as increased profits and employment opportunities. However, it also notes hurdles such as differing laws and regulations between countries. Globalization is defined as the interdependence and interrelation of the world economy. Key factors driving globalization include the fall of trade barriers, advances in telecommunications and transportation technologies, and the rise of the internet. Several global institutions that promote globalization are also discussed, including the WTO, IMF, World Bank, and UN.
This document provides an overview of international business environment. It defines international business as the buying and selling of goods and services across borders. It also defines trade and lists some differences between domestic and international business like differences in factors of production, political entities, legal systems, and taxes. The document notes several important aspects of international business environment like helping with expansion, managing product lifecycles, accessing new technologies and opportunities, and earning foreign exchange. It also lists some problems in international business environment and discusses the need for understanding international business environment to facilitate ideas, services, capital flows, consumer choice and global employment opportunities.
This document provides an overview of globalization, including its definition, types, benefits, challenges, causes, and effects. It discusses key concepts like the globalization of markets and production. Several global institutions that help manage and regulate global trade are mentioned, such as the WTO and IMF. Characteristics of global managers and stages of entering international markets are outlined. India's large skilled professional population abroad and natural resources are briefly noted.
International business; competitive advantages; evolution; nature of international business; reasons and stages of internationalisation; approaches and theories of international business; comparative cost advantage and problems of international business.
International business involves transactions between two or more countries and comprises a large portion of global business. It differs from domestic business in several key ways. International business must navigate different legal systems, currencies, resources, distances, languages, and cultures between nations. Specifically, parties must adjust practices to comply with local laws, convert currencies, source resources available in other countries, account for greater transportation distances, and consider language and cultural differences when operating internationally.
This document contains a presentation on non-economic rationales for governmental intervention. It discusses four main rationales: 1) Maintaining essential industries to prevent dependence on foreign supply, though this can lead to high costs. 2) Extending spheres of influence by encouraging trade with political allies. 3) Preventing shipment of strategic goods to unfriendly countries for national security reasons. 4) Protecting cultural activities to preserve national identity. The document also discusses forms of government intervention like state ownership, influencing consumption, and redistributing income.
BUSINESS IS DEFINED AS A SET OF ACTIVITIES RELATING TO INDUSTRY AND COMMERCE.
WHEN BUSINESS ACTIVITIES ARE CARRIED ACROSS THE POLITICAL BORDERS OF A COUNTRY, IT IS TERMED AS INTERNATIONAL BUSINESS.
A BUSINESS ENVIRONMENT INCLUDES VARIOUS EXTERNAL ACTORS AND FORCES THAT SURROUNDS A FIRM AND IMPACTS THE OUTCOME OF ITS DECISIONS AND OPERATIONS.
THE OBJECTIVE OF BOTH DOMESTIC BUSINESS AND INTERNATIONAL BUSINESS IS “MAKING PROFIT THROUGH CUSTOMERS SATISFACTION AND SOCIAL WELFARE”
TYPES OF BUSINESS ENVIRONMENT -
1. CONTROLLABLE ENVIRONMENT
a.) PRODUCTION
b.) FINANCE
c.) HUMAN RESOURCE
d.) MARKETING
2.UNCONTROLLABLE ENVIRONMENT -
a.) DOMESTIC ENVIRONMENT
b.) FOREIGN ENVIRONMENT
c.) GLOBAL ENVIRONMENT
ANOTHER MAJOR CLASSIFICATION -
1. MICRO ENVIRONMENT
2. MACRO ENVIRONMENT
RELEVANCE of international business environment
- Knowledge of international business environment is very important.
-Environment affects a firm’s strategic as well as tactical decisions so it becomes imperative for the firm to have in-depth knowledge of the various components of domestic, foreign and global environment.
This document discusses globalization and international business. It defines globalization as the broadening set of interdependent relationships among people from different parts of the world. International business consists of all commercial transactions between two or more countries. International business differs from domestic business due to physical factors like a country's geography, social factors like laws and culture, and competitive factors in foreign markets. Companies engage in international business to expand sales, acquire resources, and minimize risks.
- India is the world's largest milk producer and major dairy exports include ghee, butter, cheese and milk powder. The UAE is a key export market for Indian dairy products.
- Key factors to consider for exporting dairy to the UAE include pricing based on production and transportation costs, distribution through major cities like Dubai and Abu Dhabi, and promotional activities like advertising.
- The dairy industry should target all age groups across the UAE and position Indian products as the world's prime source of high-quality protein. Regulatory requirements to enter the UAE market and sell dairy include obtaining a trade license and following rules around branches in different emirates.
PPT for the subject of International Business prepared as per the syllabus of Osmania University-Hyderabad INDIA
This is very much useful for the students of the MBA program across all universities throughout the world
Introduction to International BusinessAshwin Kumar
Introduction to International Business is a comprehensive study of the various aspects of International Business. This presentation will provide better insights into the definition, nature, scope, characteristics, approaches, reasons, advantages and disadvantages.
This document discusses global marketing and trade institutions. It covers the following key points:
- The process of planning and conducting transactions across borders to satisfy organizational and individual objectives. Global marketing takes into account operational differences across countries.
- Major international trade organizations after World War 2 included GATT and its successor the WTO, as well as the IMF and World Bank. Regional economic institutions also formed like the EU and NAFTA.
- Different levels of economic integration are possible between countries, from free trade areas to full economic and political unions. Regional economic integration aims to reduce trade barriers.
International trade is defined as the exchange of goods and services between parties located in different countries. It has several distinguishing features compared to domestic trade within a country, such as the immobility of production factors across borders, geographical and climatic differences between countries, and differing currency and political systems among trading nations. Managing the balance of payments, or the difference between a country's total imports and exports, is also a unique issue for international trade that does not apply to domestic trade within one country.
International Business basic concept of international business
,
approaches to international business/ modes of ent
,
barriers to international business
,
absolute advantage and comparative advantage
Samantha Krug is a 26-year-old student majoring in early childhood education. She has three brothers and a niece and nephew. Samantha loves the fall holidays and is expecting her first child in March with her boyfriend of three years, Dustin. She hopes to one day be a kindergarten through sixth grade teacher.
Narcissa travels frequently for work and has trouble sleeping both in transit and in hotel rooms. Some suggestions to help her sleep better include using eye masks and headphones to block noise, listening to relaxing music, drinking warm milk or chamomile tea, and bringing familiar pillows, blankets or pictures from home. Hotels could also offer special sleep amenities like different bed options, aromatherapy packages or soundtracks to induce sleep. Regular exercise and maintaining a consistent sleep schedule may also help Narcissa sleep better on the road.
Performance indicators for different levels of managementsree431
The document discusses the roles and responsibilities of different levels of management in performance management. It states that top management must play a leading role in implementing performance management systems successfully and setting standards for lower levels. Line managers have a crucial role in each stage of the performance management cycle, from setting goals to conducting reviews. The HR department also plays an important strategic role in performance management as an enabler. Regular feedback is important for performance improvement, and 360-degree feedback provides a rounded view of an employee's performance from different perspectives.
This document appears to be describing a social media platform called Croutons.org where users can create pixel art versions of photos by having their connections represented as individual pixels/croutons. The more connections a user has, the more croutons/pixels are added to gradually build up their profile photo one crouton at a time. The document encourages users to join and see their photos come to life as more croutons are added by their network.
Performance indicators for different levels of managementsree431
performance management system is now inevitable in every organisations. introducing performance management in an organisation is essential. Role played by different levels of managers in its effective execution is described in the slides.
CodeRetreat is a day-long software development training event that focuses on fundamentals and design through intensive practice. It follows a structured format of sessions with changing partners, using test-driven development and simple design principles. The goal is to practice skills outside normal work constraints in a supportive environment.
This document outlines some practical classroom activities for collaborative composition. It begins by defining collaboration and exploring the historical basis in theorists like Bakhtin, Barthes, and Foucault. Benefits of collaboration are discussed, including generating complex thought and mirroring real-world practices. The document provides a scaffolding model called IMSCI and describes establishing inquiry, modeling, shared writing, and independent writing. Additional collaborative activities are presented, such as using wikis and think-pair-share techniques.
The document provides observations and insights from visits to 6 different stores - Echo Store, Charles and Keith, Beabi, DIY Shop, Daze, and Fully Booked. The observations note issues with categories, lighting, unavailable products in photos, overwhelming options, small storefronts not indicating interior size, generic employee uniforms, and lack of signage. The insights provide recommendations such as improving categories, changing lighting combinations, ensuring photos match available stock, displaying use pictures, communicating interior offerings, distinctive uniforms, and signage about sales and dedicated reading areas.
This document describes an inheritance lab that involves creating a base BankAccount class and two derived classes - CheckingAccount and SavingsAccount. The CheckingAccount class overrides the withdraw function to add transaction fees. The SavingsAccount class overrides the balance inquiry function to calculate interest earned daily. Students are instructed to create these classes, write a test program to demonstrate their functionality, and answer questions about the lab in a report.
The document outlines the rules and objectives of a game played between two teams of 5 players where each team must use implements like a colander, broom, or cushion to maneuver a rubber ball across their opponent's goal line, with the first team to reach 10 points winning the match and needing to win 2 out of 3 games. The colander, broom, and cushion are described in terms of their offensive and defensive uses as well as point values for goals scored with each implement.
Time management is important to avoid wasting time and increasing productivity. There are three key principles: 1) multitasking decreases productivity by increasing time to complete tasks and reducing quality while raising stress; 2) avoid letting the mind wander by focusing on one task at a time; 3) do not waste time by paying interest on time by procrastinating. Being organized by deciding what to do, where to do it, and when to do it reduces time wasted switching tasks and increases productivity.
CIS 247C iLab 4 of 7: Composition and Class Interfaces HomeWork-Fox
The objective of the lab is to modify the Employee class to incorporate composition with a Benefits class and implement an abstract iEmployee interface. Students are instructed to create a Benefits class, integrate it into the Employee class by adding a Benefit attribute, and make Employee inherit from the abstract iEmployee interface requiring implementation of calculatePay. The main method is updated to demonstrate use of the new Benefits object by prompting the user for benefit details and displaying employee information along with their assigned benefits.
Nobody argues these days that unit tests are useful and provide valuable feedback about your code. But who watches the watchmen? Let's talk about test code quality, code coverage and introduce mutation based testing techniques.
London Sightseeing Tour Places of interestkultbag31
This document provides information about landmarks and places of interest in London in 3 sentences or less summaries:
The document discusses the history and facts about London, including that it was founded over 2000 years ago by the Romans, currently has a population of over 8 million, and is the capital city of England. Key landmarks like Big Ben, Buckingham Palace, Westminster Abbey, Tower Bridge, and Trafalgar Square are summarized with details about their history, design, and significance. Various districts and neighborhoods across London like Covent Garden, Piccadilly Circus, and the 2012 Olympic Village are also briefly outlined.
To effectively negotiate, you must research what you are worth in terms of salary, bonuses, schedule flexibility and vacations. Prioritize your needs and identify the needs of stakeholders by investigating what your negotiation partner says about themselves, what others say about them, and their needs. There are two main approaches to negotiation - distributive bargaining which is a win-lose proposition, and interest-based bargaining where you expand the conversation to find mutual benefits and expand the benefits for all parties involved, referred to as expanding the pie.
Econ452 Learning Unit 01 - Part 1 - 2020 fallsakanor
This document provides an introduction to international economics. It distinguishes international economics from domestic economics and explains that international economics examines how nations interact through trade, money flows, investment, and immigration. It identifies seven main themes in international economics: (1) gains from trade, (2) patterns of trade, (3) how much to trade, (4) balance of payments, (5) exchange rate determination, (6) international policy coordination, and (7) international capital markets. It also distinguishes between the trade and monetary aspects of international economics.
This document provides an introduction to international economics. It distinguishes international economics from domestic economics and explains that international economics examines how nations interact through trade, money flows, investment, and immigration. It identifies seven main themes in international economics: (1) gains from trade, (2) patterns of trade, (3) how much to trade, (4) balance of payments, (5) exchange rate determination, (6) international policy coordination, and (7) international capital markets. It also distinguishes between the trade and monetary aspects of international economics.
The document discusses the importance of comparative advantage and international competitive advantage. It explains that comparative advantage allows countries to specialize in producing goods and services that utilize their abundant resources at a lower opportunity cost. This benefits consumers through increased variety and competition which drives innovation. International business grows as countries trade based on their comparative advantages, creating jobs and economic opportunities around the world.
This document provides an overview of international trade and investment patterns. It discusses key concepts related to international trade such as reasons for trade across borders, importance of trade, leading trading nations and commodities. It also outlines some risks in international trade. The document then focuses on India's trade patterns, presenting data on exports, imports and balance of trade from 2001-2011. It discusses India's major export and import categories and sectors benefiting from the country's foreign trade policy.
Globalization refers to the increasing integration of economies around the world through cross-border trade and financial flows. It allows businesses to expand internationally to access new markets, raw materials, lower costs, and talent. While globalization increases productivity and living standards, it also results in job losses and increased competition. For businesses and countries to benefit from globalization, they require an open policy environment, infrastructure, government support, resources and competitiveness. Multinational companies play a major role in globalization by operating in multiple countries.
This document discusses international business management. It defines international business as business operations conducted across more than one country that requires specialized knowledge of different business regulations, customs, laws, and managing transactions across currencies. Key features of international business discussed include large scale operations, integrating economies across countries, domination by developed countries and multinational corporations, benefits to participating countries, and keen global competition. The document also covers internationalization of business, advantages of internationalization, differences between internationalization and globalization, and factors driving globalization of businesses like reduced trade barriers and growth of the internet and multinational corporations.
1. International trade involves cross-border transactions of goods, services, and resources between nations for commercial purposes.
2. There are several reasons why companies enter international markets, including accessing new markets and resources, reducing costs, and gaining competitive advantages.
3. While international trade provides benefits like increased specialization and access to cheaper goods, it also faces challenges such as political risks, trade barriers, and cultural differences between countries.
OCR F585 Economics - Extract 1 - Globalisation and Tradetutor2u
Globalization is a process of increasing economic integration between countries through trade and financial flows. It has led to rising trade as a percentage of GDP for most countries as global supply chains have developed. Smaller and poorer countries like Malawi have seen particularly large increases in trade as a share of their economy, reflecting their specialization in just a few primary exports and dependence on imports. While globalization can boost growth, it also exposes smaller economies to volatility from global markets.
Chapter 1_ Overview of International Business.pptxTeshome48
This document provides an overview and introduction to an international business course. It defines international business as trade and investment activities across national borders. The main topics covered are the globalization of markets, international trade and investment, risks in international business, participants in international business, and strategies for entering international markets like exporting and foreign direct investment. The course objectives are to introduce students to international business and analyze how the global environment impacts international firms. Students will be evaluated based on assignments and a final exam.
The document discusses the evolution of global trade regulations and policies on trade and investment. It describes international organizations like the ITO, GATT, and WTO that were formed to establish rules and resolve trade disputes. However, traditional institutions have weakened with the rise of new economic powers and financial globalization limiting domestic policy influence. This has exacerbated conflicts between industrialized and developing nations. Countries employ various restrictions and promotions around imports, exports, and foreign direct investment to influence trade and safeguard their economic interests both multilaterally and bilaterally.
International trade involves the exchange of goods and services between countries. Almost every product can be found in international markets, including food, clothes, oil, jewelry, and currencies. About 15% of the world's output is traded internationally in a typical year. The WTO helps facilitate international trade by implementing trade agreements, resolving disputes, and reviewing countries' trade policies. While international trade provides benefits like increased efficiency and choice, it also faces challenges such as job losses and high startup costs of entering new markets.
This document summarizes key aspects of global production and trade structures. It discusses how production has become more fragmented and outsourced globally since the industrial revolution. It also outlines trends in foreign direct investment flows shifting from developed to developing nations. Finally, it analyzes perspectives on international trade from economic liberals, mercantilists, and structuralists and how trade rules aim to maximize its benefits while limiting costs.
INTERNATIONAL BUSINESS - MG UNIVERSITY 3RD SEMESTER - FULL NOTESSooraj Krishnakumar
This document provides an overview of the modules covered in an International Business course. It discusses key topics such as the nature and dimensions of international business, the globalization process, international economic institutions, export/import procedures, foreign investment, and social and environmental issues in international business. The modules cover the international business environment, entry strategies, factors driving globalization, and challenges that companies face when operating globally.
global trading environment in international businessryan gementiza
This chapter discusses the global trading environment and political risks faced by multinational corporations. It covers topics like trade liberalization, foreign direct investment, preferential trade agreements, and the role of multinational corporations in technology transfer. MNCs contribute to technology transfer in developing countries by providing resources and innovations to improve productivity. However, they also face political risks from government intervention, acts of violence, and instability in host countries. The chapter provides an overview of the key concepts and debates around the global economy and operations of international businesses.
This document discusses international trade and competing in global markets. It covers several topics:
1) Why nations trade and the different types of advantages in international trade.
2) Measurements of international trade like balance of trade and exchange rates.
3) Barriers to international trade such as tariffs, quotas, and cultural differences.
4) How international organizations reduce trade barriers through agreements and economic communities.
5) Different levels of involvement for businesses entering global markets, from exporting to direct foreign investment.
International business involves the exchange of goods, services, capital, and other resources across national borders. There are several reasons why countries engage in international trade, including that it allows for mutually beneficial transactions and specialization according to comparative advantages. However, international trade differs from domestic trade in that factors of production and technologies are often specific to individual countries, and governments can restrict cross-border movement to varying degrees. The forms that international business takes include exports, imports, foreign investment, licensing, and franchising.
This document provides an overview of international trade. It defines international trade as an exchange of goods or services between two or more countries, whether through imports or exports. Countries engage in international trade because of comparative advantages - when one country can produce a good at a lower opportunity cost than other countries. Comparative advantages arise from differences in factors like climate, resource endowments, and technology between nations. While free trade allows gains from trade, many governments implement protectionist policies like tariffs and import quotas to shield domestic industries.
Chapter 1 Overview of International Business.pptxZoeyChang7
International business involves commercial transactions across national borders. It includes trade, investments, and business activities performed by multinational enterprises, small and medium enterprises, and born global firms. There are various risks associated with international business such as cultural, political, financial, and commercial risks. Globalization and factors like advancing technology, liberalizing trade policies, and increasing competition have contributed to the rapid growth of international business activities in recent decades.
TEST BANK For Auditing & Assurance Services A Systematic Approach, 12th Editi...kevinkariuki227
TEST BANK For Auditing & Assurance Services A Systematic Approach, 12th Edition By William Messier Jr, Steven Glover, Verified
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The Matatag Curriculum of the Philippines for the School Year 2024-2025
The Matatag Curriculum is designed to strengthen and enhance the educational system in the Philippines, aiming to address existing challenges and better prepare students for the future. "Matatag" means "strong" or "resilient" in Filipino, reflecting the curriculum's focus on building a solid and adaptable foundation for students.
The curriculum is structured for elementary (Grades 1-6), junior high (Grades 7-10), and senior high school (Grades 11-12) levels, with a focus on foundational skills, specialized tracks, and real-world learning experiences. Overseen by the Department of Education (DepEd), the Matatag Curriculum aims to improve academic performance, equip students with 21st-century skills, and foster responsible citizenship.
The Matatag Curriculum of the Philippines for the School Year 2024-2025 focuses on strengthening and enhancing the educational system with the following key features:
Holistic Development: Addresses intellectual, emotional, social, and physical growth.
Learner-Centered Approach: Promotes active learning, critical thinking, and problem-solving skills.
Revised Content and Competencies: Updates subject matter to align with global standards.
Technology Integration: Incorporates digital literacy and technology in education.
Sustainability and Global Citizenship: Introduces environmental sustainability and responsible citizenship concepts.
Indigenous Knowledge and Culture: Integrates and respects indigenous practices.
Teacher Training and Development: Provides continuous professional development for educators.
Assessment and Evaluation: Utilizes various assessment methods to measure student progress.
Virtual Production Tool Set and Technologies Redefining Cinema.pdfvirtualproduction38
Discover how Virtual Production Tools and cutting-edge tech are revolutionizing filmmaking! Unleash creative freedom with virtual sets and in-camera VFX.
Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...Philip M Caputo
As explained by Philip M Caputo, Tom's River New Jersey, is rapidly emerging as a vibrant hub of innovation and entrepreneurship. With its strategic location, supportive community, and rich history of resilience, this town is transforming into a beacon for entrepreneurial endeavors. Toms River fosters a dynamic environment where ideas flourish, and businesses thrive, from tech startups to creative enterprises.
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United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...Newman George Leech
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- Seasoned discoverers with mineral finds of >$1Bn (silver), >42Mozs (gold), >12Blbs (copper)
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Group 8. part a
1. ECONOMIC GROWTH AND
DEVELOPMENT IN SEA
ECONOMIC INTERNATIONAL
RELATIONSHIP AND DEVELOPMENT
Instructor: Msc. Nguyen Trong Dac
Group 8: Do Thanh Vinh (Leader)
Luong Thi Nhu
Pham Anh Duong
Nguyen Thi Hue
2. Content
•
•
•
•
Part 1: International Economics Relationship
Part 2: International Trade and Development
Part 3: International Finance and Development
Part 4: International Investment and
Development
4. What is International Economics
Relationship?
Economic international relationship is a field of
international relations – the study of relationships
among countries.
It is both an academic and public policy field and
can be either positive or normative as it both seeks
to analyze as well as formulate the foreign policy
of particular states.
5. A country often get IER with 5
main dimensions:
•
•
•
•
•
Trade
Finance
Investment
Labor/ Human Capital
Science and Technology.
6. The reasons we have IER in the
world?
• The differences in natural conditions between
countries:
- Natural resources
- The weather
- …
Ex: Vietnam
7. The reasons we have IER in the
world?
• The uneven development between
countries about the economic, scientific
and technical
8. The reasons we have IER in the
world?
• The development of economic lead inevitably to
the international division of labor in order to
improve the efficiency of using resource,
economic growth
9. The reasons we have IER in the
world?
• The objective requirements of specialization
between countries in order to achieve the
optimal scale for each industry.
• The diversity of needs in each country
10. The roles of IER
For industrial development countries:
• Expansion of economic power
• Look for favorable investment
(higher margins, take advantage
of the country get investment)
11. The roles of IER
For developing countries:
• Absorbing capital, advanced science and
technology for industrialization, modernization of
the economy
• Efficient exploitation of resources, job creation,
economic growth
• Promote the production of goods on a large
scale, large-scale market expansion.
12. The roles of IER
•
-
Example: In some industries, such as:
garment industry
service industries
ancillary industries (industry support the
assembly of the final product by providing
detailed parts and components products of other
intermediate goods)
What do Vietnam gain?
What do Japan, Taiwan gain?
13. External economic strategy of developing
countries and least-developed countries
• Closed economy Strategy
• Opened economy Strategy
11/27/2013
14. Closed economy strategy
• Economic development towards self-sufficiency
• Only export the excess product after meet
domestic consumer demand
• Only receive international investment in
commodity production "import substitution".
11/27/2013
15. Closed economy strategy
Advantages:
• - The speed of economic growth is slow but
steady
• - Take less negative impact of the world
economy: crisis, recession ...
• - Potential of the country in a certain extent is
exploited maximum.
• - Economic independence => politically
independent.
11/27/2013
16. Closed economy strategy
Disadvantages:
• Contrary to the objective laws and trends of the
times.
• Limited ability to acquire capital, advanced
scientific and technical => low labor productivity
=> country is lag
• Often have to borrow to meet domestic demand
11/27/2013
17. Closed economy strategy
• Buying small domestic market, limited
production scale => unemployment
• Domestic market have a small buying ability,
less abundant
• Imported materials to produce => rising costs,
inefficient production
11/27/2013
18. Opened economy Strategy
• Expanding economic relations, focusing on
foreign trade, priority export.
• Create an open environment to attract
international investment, especially FDI.
11/27/2013
19. Opened economy Strategy
Advantages:
• High economic growth
• Exports go up => more foreign currency =>
import more advanced machinery and
equipment => industrial modernization.
• Expand production scale, market => attract
workers
• Promote domestic technological innovation to
improve competitiveness.
11/27/2013
20. Opened economy Strategy
Disadvantages:
• The speed of economic growth is precarious,
unstable
• The domestic economy is dependent on:
+ capital
+ technology
+ markets (input, output)
• Economic dependence may depend on political
• Economy develop unbalanced, one-sided.
-
21. International labor/ International
human capital
• International movement of labor in the form of
labor export and labor import.
• The labors who move to other country to get a
job form of labor export often work in factory or
as a home-making, care for children and the old
people.
22. International Science and
Technology
The form includes the coordination between
countries to proceed:
• Research
• Patent
• Design
• Test
• Exchange of research results
• Information of science and technology
• Application of new scientific and technological
achievements into practical production
24. Content
• The definition of International Trade in economic
• The relationship between international trade and
economic growth - development
• Advantage and dis-advantage of international trade
• Benefit and risk of international trade
• Trade barrier
• The world trade organization
• International trade in Viet Nam
25. What is International Trade?
• International trade (also known as foreign trade) is the
exchange of goods and services between countries.
• International trade is most commonly recognized in the
exchange of goods or products.
• Trading globally gives countries
the opportunity to be exposed to
goods and services not available
in their own countries
27. International trade and economic
growth
• International trade contributes to the growth of a
country’s economy in several ways:
+ Import
+ Export
+ Specialization
International trade
raises GDP
increased productivity
improved infrastructure
28. Import - Export
• A product that is bought from the global market is an
import
• A product that is sold to the global market is an export
30. Specialization
• How does specialization encourage trade between
countries?
• When a country is good at making their product they
specialize in it, improve the product to make more
money. If another country doesn't have that but
specializes in something the other one needs then they
will trade. This is why specialization encourages trade.
31. International trade and development
• International trade allows developing nations to acquire
capital from abroad in return for either natural resources
or cheap labor
• This foreign capital can then be invested in local
industry, agriculture, infrastructure, and social
improvements.
32. Two aspects of international
trade
•
•
•
•
•
•
Advantages
A country may import
things which it cannot
produce
Maximum utilization of
resources
Benefit to consumer
Reduces trade
fluctuations
Utilization of Surplus
produces
Fosters International
trade
Disadvantages
•Import of harmful goods
•It may exhaust resources
•Over Specialization
•Danger of Starvation
•One country may gain at
the expensive of another
•It may lead to war
33. Benefits of international trade
•
•
•
•
•
•
•
•
•
•
Enhances the domestic competitiveness
Takes advantage of international trade technology
Increase sales and profits
Extend sales potential of the existing products
Maintain cost competitiveness in your domestic market
Enhance potential for expansion of your business
Gains a global market share
Reduce dependence on existing markets
Stabilize seasonal market fluctuations
Closer ties between nations
34. Risk in international trade
Economic risk
• Risk of concession in
economic control
• Risk of insolvency of the
buyer
• Risk of non-acceptance
• Risk of Exchange rate
Political risk
• Risk of non- renewal of
import and exports
licenses
• Risks due to war
• Risk of the imposition of
an import ban after the
delivery of the goods
• Surrendering of political
sovereignty
35. Risk in international trade
•
•
•
•
•
•
Buyer country risks
Changes in the policies of
the government
Exchange control
regulations
Lack of foreign currency
Trade embargoes
Commercial risk
A bank's lack of ability to
honor its responsibilities
•
•
•
•
•
•
Other risks
Cultural differences
Lack of knowledge of
overseas markets
Language barriers
Effects of unpredictable
business environment
and fluctuating exchange
rates
Sovereign risk
Natural risk
36. Trade barrier
The most common sorts of trade barriers are:
•
•
•
•
Subsidies
Tariffs
Quotas
Embargoes
37. Subsidies
• Subsidies are often placed to protect domestic industries
• In Vietnam, the items are often heavily subsidized by
the government that is fuel (gas, petrol,..)
electric, construction material (steel…)
• Subsidies can stabilize the price of a goods
at a reasonable level and it makes imports
non-competitive
39. Tariffs
• A tariff is a tax. It adds to the cost of imported goods and
is one of several trade policies that a country can enact
• Tariffs were a large source of government revenue
41. Quotas
• Import quotas: Puts limits on the quantity of certain
products that can be legally imported into a particular
country during a particular time frame
• Governments generally set import quotas by selling
licenses to specific importers, allowing them to import a
specified quantity.
43. Embargoes
• Embargoes are a government order which completely
prohibits trade with another country.
• The embargo is the harshest type of trade barrier and is
usually enacted for political purposes to hurt a country
economically and thus undermine the political leaders in
charge
• Example: Korea embargoed by the United Nations.
Because of the country's threats of nuclear weapons
44. Free trade
• Free trade is a system in which goods, capital, and labor
flow freely between nations, without barriers which could
hinder the trade process.
• A number of barriers to trade are struck down in a free
trade agreement. Such as: Taxes, tariffs, and import
quotas…
• It will lower prices for goods and
services by promoting competition.
• Free trade can also foster international
cooperation, by encouraging nations to
freely exchange goods and citizens.
45. Fair trade
• Fair Trade is a trading partnership, based on dialogue,
transparency and respect
• Fair Trade contributed to sustainable development
• Fair Trade organizations have a clear commitment to
Fair Trade as the principal core of their mission
• Fair Trade is more than just trading: it proves that
greater justice in world trade is possible
46. The different between free trade
and fair trade
+ Labor and human right
Free trade: not include minimum safety, human rights and wage
standards
Fair trade: insisting on reasonable compensation for workers and
reasonable safety, health and human standards of workers.
+ Financing
Free trade is financed on a cash-on-delivery basis
Fair trade is able to extend credit that can provide income during lean
periods.
+ Marketing
Free trade products are marketed in a way that maximizes sales and
profits.
Fair trade marketing, while seeking profit and sales, focuses on
educating the consumer.
47. General Agreement on Tariffs
and Trade
• The General Agreement on Tariffs and Trade (GATT)
was established in 1948.
• Adopted by 23 countries, including the United States
• GATT's main objective was to reduce the barriers of
international trade through the reduction of tariffs, quotas
and subsidies.
• Encouraging of fair competition on
the basis of mutual compromise.
• Ensuring of predictable and
transparent trade policy of each parties.
48. The World Trade Organization
• WTO is successor of the General Agreement on Tariffs
and Trade (GATT) signed in Geneva in 1947
• WTO has 156 members (22/08/2012) and Vietnam is the
150th member.
• Includes services and trade-related aspects of
intellectual property, such as books, movies,
and computer programs
• In WTO, average tariffs will fall from 6% to 4%
• Includes a dispute settlement body that should be faster,
more automatic, and less susceptible to blockage than
GATT
49. The differences between GATT
and WTO
• GATT dealt with trade in goods. WTO covers services
and intellectual property as well.
• WTO dispute settlement is faster, more automatic than
GATT’s. Its rulings cannot be blocked.
• WTO reach into domestic areas that were previously
immune from external pressures.
• GATT agreements temporary, WTO agreements are
permanent; the agreements themselves describe how
the WTO is to function.
50. International trade in Viet Nam
• Country Strong Points
The country's strong points are:
- Positive economic prospects in terms of growth, despite
the global crisis;
- A young, cheap, rapidly growing and more and more
technologically qualified manpower;
- A certain social-political stability;
- A government committed to liberalizing the economy and
to introducing reforms based on the free market.
51. International trade in Viet Nam
• Country Weak Points
The country's weak points are:
- Weak investment and financial freedom;
- The lack of guarantees for property rights;
- A high level of corruption (in the legal system, as well as
for civil service).
52. How to develop international
trade in Vietnam
Export:
• Focus on key export commodities such as agricultural
products, aquatic products ...
• Innovate management policies for export activities
Import:
• Address effectively the relationship among importproduction-export
• Innovate management policies for import activities
• Governments need to make rational policies consistent
with local market
54. 1. Definition International
finance
The emergence and existence of international financial
relations is an inevitable financial categories, derived from
the basis of the following objective:
Economy: the role of decision for the generation and
development of the international financial system.
Politics: a direct impact on the form and extent of
international financial relations.
55. 1. Definition International
finance
On a macro-economic perspective:
- Exchange rate.
- International balance of payments.
- Monetary system, international finance.
- Foreign debt and foreign debt management.
A market perspective (micro economics):
- Assessment and Risk Management International.
- International financial markets.
- International investment directly and indirectly.
56. Two big problem of SEA now that
foreign aid and international debt”.
1.1 Foreign aid:
- Definition:
is consists of financial flows, technical assistance, and
commodities given by the residents of one country, either
as grants or as subsidized loans. Aid can be given or
received by governments, charities, foundations,
businesses, or individuals.
57. 1.1 Foreign aid:
• Not all transfers from wealthy countries to poor countries
are considered to be foreign aid.
• According to the DAC, to be counted as foreign aid the
assistance must meet two criteria:
1. It must be designed to promote economic
development and welfare as its main objective.
2. It must be provided as either a grant or a
subsidized loan.
58. 1.1 Foreign aid:
• The DAC group aid flows into three broad categories:
1. ODA is the largest, consisting of aid provided by
donor governments to low- and middle-income
countries.
2. OA is aid provided by governments to richer
countries with per capita incomes higher than
approximately $9,0005 and countries that were
formerly part of the Soviet Union or its satellites.
3. Private voluntary assistance includes grants from
nongovernment organizations, religious groups,
charities, foundations, and private companies.
59. 1.1.1 Reality of foreign aid in the
world
World Top Ten Foreign Aid Donor
Countries
Country
In Billion Dollars
United States
12.9
Japan
9.2
Germany
5.4
France
5.2
United Kingdom
4.8
Netherlands
3.4
Italy
2.3
Canada
2.0
Sweden
1.8
Norway
1.8
60. 1.1.1 Reality of foreign aid in the
world
Net official development assistance (ODA) in 2006
Millions of US dollars
United States
35 000
Germany
30 000
25 000
20 000
United Kingdom
Japan
15 000
10 000
5 000
0
Netherlands
Italy
Luxembourg
61. 1.1.1 Reality of foreign aid in the
world
0.85
0.9
United States
0.74
0.8
% of GDP
0.7
Germany
0.6
United Kingdom
0.5
0.28
0.3
0.2
Japan
0.36
0.4
0.16
0.19
Netherlands
0.15
Italy
0.1
Luxembourg
0
Net ODA in 2006 as a Percentage of Donor GDP
62. 1.1.1 Reality of foreign aid in the
world
However, when aid is measured as a share of the
donor’s income. The most generous donors from this
perspective are Norway, Luxembourg, Denmark.
Sweden, and the Netherlands, each of which provided
between 0.74 and 0.87 percent of GDP in ODA. The
is one of the smallest donors by t his
measure, with ODA equivalent to about 0.16% of U.S
income.
Although U.S ODA levels as a share of income are small
compared with the other countries.
63. 1.2 The relationship among aid,
growth and development:
1.2.1 Aid Has a Positive Impact on
Economic Growth and Development:
- Promoting health, education, and the
environment.
- Providing emergency assistance and
humanitarian relief.
- Supporting economic and political stability.
64. 1.2 The relationship among aid,
growth and development:
Aid, saving, and tax revenue:
• Not all aid is provided as investment goods or even
aimed at increasing investment and growth.
• Even where aid is aimed directly at investment, the
impact could be partially offset by a reduction in either
private saving or government saving.
65. 1.2 The relationship among aid,
growth and development:
Aid Has a Conditional Relationship with Growth,
Stimulating Growth Only under Certain
Circumstances, Such as in Countries with Good
Policies or Institutions:
•
Characteristics of the recipient country.
•
Donors practices.
66. Type of aid
1) Emergency and humanitarian aid, likely to be
negatively associated with growth, since it increases
sharply at the same time growth falls because of an
economic shock.
2) Aid that might affect growth only after a long period
of time, if at all, and so a growth impact may be
difficult to detect, such as aid for health, education,
the environment, and to support democracy.
3) Aid directly aimed at affecting growth (building
roads, ports, and electricity generators, or
supporting agriculture).
67. 1.3 Solutions to improve the
effectiveness of aid:
• Country selectivity
• Recipient participation.
• Results-based management:
There are three basic objectives:
1) Results-based management can help donors
allocate funds toward program that are working.
2) Ongoing reviews can detect problems at an early
stage and help modify and strengthen existing
programs.
3) Donors and recipient can better learn what
approaches have worked and what have not.
68. 1.4 Foreign aid to Viet Nam
• The World Bank’s assistance program of foreign aid to
Vietnam has three objectives:
– to support Vietnam’s transition to a market economy,
to enhance equitable and sustainable development,
and to promote good governance.
– From 1993 through 2004, Vietnam received pledges
of US$29 billion of Official Development Assistance
(ODA), of which about US$14 billion, or 49 percent,
has been disbursed. In 2004 international donors
pledged ODA of US$2.25 billion, of which US$1.65
billion was disbursed.
69. 1.4 Foreign aid to Viet Nam
After 16 public meetings held CG, Vietnam has 51 donors,
including 28 bilateral donors and 23 multilateral donors
have regular ODA programs.
• A large number of bilateral donors, such as: Australia,
Germany, Korea, USA, Japan, France, Singapore,
Switzerland, China, United Kingdom, ...
• World Bank Group (WB)
• International Monetary Fund (IMF)
• the Asian Development Bank (ADB)
• European Commission (EC)
• European Union (EU)
70. 1.4 Foreign aid to Viet Nam
The organizations of the UN system, including:
• UN Population Fund (UNFPA)
• Program of the United Nations Industrial Development
(UNIDO)
• United Nations Development Program (UNDP)
• United Nations Children's Fund (UNICEF)
• International Fund for Agricultural Development (IFAD)
• Food and Agriculture Organization (FAO)
• World Health Organization (WHO).
• The international non-governmental organizations in
Vietnam (NGO)
71. 1.4 Foreign aid to Viet Nam
The use of ODA priorities for works and projects in the
following areas:
• Agriculture and rural development (agriculture, irrigation,
forestry, fisheries) in combination with poverty reduction.
• Develop economic infrastructure towards modernization.
• Development of social infrastructure (health, education,
population…)
• Protection of the environment and natural resources
management.
• Strengthening institutional capacity, management,
technical and human resource development; technology
transfer, capacity building and research development.
73. 2. Foreign debt
2.1. Overview of foreign debt:
Foreign debt is an outstanding loan that one country owes
to another country or institutions within that country.
Foreign debt also includes due payments to international
organizations such as the International Monetary Fund
(IMF). The debt may be comprised of fees for goods and
services or outstanding credit due to a negative balance of
trade. Total foreign debt can be a combination of short-term
and long-term liabilities.
76. 2.2.1 Advantages
1.
2.
From a national perspective, borrowing permits a country to
invest more than it can save and import more than it can
export. If the additional funds finance productive investment,
they should yield sufficient returns to pay the interest and
principal on the initial foreign inflows. Since capital is
relatively scarce in low-income countries, these countries
have the potential to realize higher rates of return on
investment and more rapid economic growth than richer
countries, providing the foundation for lending from rich to
low-income countries.
When a domestic firm borrows abroad, there are no
controversies over foreign ownership, profit repatriation, tax
holidays, and the like that arise with foreign direct
investment (FDI). In addition, foreign borrowing can be
undertaken much more quickly and easily than FDI.
77. 2.2.2 Disadvantages
Besides the undeniable advantages, foreign debt has some
downsides as well:
1.
2.
3.
The debts must be paid even when a project goes bad. Too much
borrowing of the wrong kind or for the wrong purposes can leave
developing countries vulnerable to sudden capital withdraws and
financial crises.
Short-term debt, in particular, can very quickly switch from rapid
inflow to rapid outflow, which can cause sudden plunges in
exchange rates and skyrocketing interest rates and wreak havoc
on banks, private companies, and government budgets.
Borrowing too much to finance consumption or poorly conceived
investment also can lead to trouble. Borrowing is much easier
politically than raising taxes to pay for spending, especially if
governments do not think they will still be in office when it is time to
repay.
78. 2. Foreign debt
2.3. Debt crisis in low-income countries
Low-income countries were hit by the same set of strong
international economic shocks: high oil import prices, low
commodity prices, the end of the gold standard, and weak
market demand in the industrialized countries.
=> Governments kept budget deficits high, erected
significant barriers to trade, distorted market prices, and
failed to provide basic infrastructure and health and
education services.
79. 2. Foreign debt
2.4 How to escape from the crisis:
1. Refinancing: involving making new loans to repay the
old.
2. Rescheduling.
3. Reduction: in which the amount actually owed is
reduced (i.e., forgiven), either partly (a write-down) or
completely (a wirte-off).
4. Buybacks.
5. Debt-equity swaps: in which creditors are given equity
in a company
80. 2. Foreign debt
2.5 Lessons from the crises:
-These crises suggest that governments should proceed
carefully in liberalizing domestic financial transactions and
ensuring parallel development of the requisite regulatory
institutions.
-The crises indicate that fixed rates create vulnerability to a panic
and ultimately lead to huge economic adjustments when the
exchange rate no longer can be defended.
- In terms of foreign capital inflows, there are clear differences
between FDI and other long-term capital and short-term capital.
Long-term capital flows are much less prone to panic and more
strongly associated with long-term investment and growth
=>
governments should be much more careful about, and at times
possibly even discourage, short-term flows
81. 2.6 Foreign debt in Viet Nam
Order
Indicators
Counted to 12/31/2003
1
Total national debt (Billion USD)
- Government debt
- Business debt
13.251
2
Total debt/GDP
32%
3
Total debt/Export
5.8%
10.120
3.231
Foreign debt of Vietnam counted in 12/31/2003
Source: Ministry of Finance
82. 2.6 Foreign debt in Viet Nam
The indicators to evaluate debt level of Vietnam (2005)
Order
Indicators
HIPC (%) Vietnam (%)
1
Net present value of debt/Export
150
36
2
Net present value of debt/Budget revenue
(minus foreign aid)
250
95
3
Repayment/Export
15
2
4
Repayment/Budget revenue
(minus foreign aid)
10
6
83. 2.6 Foreign debt in Viet Nam
• According to the Ministry of Finance, the country's
foreign debt by the end of 31/12/2009 39% of GDP and
the highest level since 2005. However, if based on the
level of foreign exchange reserves, the total outstanding
debt of Vietnam is still in a safe threshold. Foreign
exchange reserves to total short-term foreign debt of the
Philippines is 290%, while the recommendations of the
World Bank is more than 200%. Debt obligations of the
Government of the total state budget of Vietnam is 5.1%,
the safety threshold of WB is less than 35%.
85. The basics of international
investment
1. Definition
International investment is a process in which the
movement of capital from one country to another
country to make the investment projects to bring
benefits to the participating countries
86. Characteristics
• International Investment is a necessity factor for each
country
• International Investment leads to the positive and
negative impacts for the investor and the investee.
• International investment in each group of countries is
differ in size, structure, and policies
• They carry the characteristics of investment in general:
- high profitable
- high risky
87. The role and impact
1. For the investors
Positive Impacts:
• Improving the efficient use of capital.
• Building a stable market for supply of raw materials.
• Expanding economic strength, improve reputation in the
international market.
• Reducing risks, changes in economic structure towards
efficiency.
88. The role and impact
Negative impact:
• Investors may face greater risks.
• Leads to reduce employment in the host country.
• May be loss of the copyright in the process of technology
transfer.
• Investors don’t want to do business in their country that
wants to do business in foreign countries.
89. The role and impact
2. For the investees
Positive impacts:
For the group of developed countries:
• Solving difficult problems of social and economic.
• Creating new jobs, increase revenue in the form of taxes.
• Creating a competitive environment to promote the
development of economy and trade.
• Learning more advanced management experience of other
countries
90. The role and impact
For the least developed countries and developing
countries:
• Help speed up the development of the economy.
• Attracting more workers, create jobs, solve
unemployment.
• Contributing to the improvement of the competitive
environment.
• Contributing to reception of science and technology
from other countries.
91. The role and impact
Negative impact:
• Leading to exploitation of natural resources excessively.
• Caused differentiation, increasing the development gap in
regions and countries.
• Increasing the problem of social evils and diseases.
• Be affected or dependent on the demand from the
investors.
92. Cause of formation and
development
• Due to the imbalance of the factors of production between
countries
• Due to meet interests of the parties involved
For the investors
For the investees
• And in other case.
93. Forms of International
Investment
1. Foreign Direct Investment (FDI):
Definition:
FDI is a long-term investment activities in which the
investor directly manage and controll using capital
activities. This is the capital flow high stability, long
time investment, managed by the investor directly.
94. Forms of International
Investment
2. Indirect Investment:
Definition:
It is the type of movement of capital between countries, in
which the owner does not directly manage and controll
using capital activities. It depends on the level of
management and organization management of the
investee. Investment efficiency is not high.
95. Forms of International
Investment
3. International trade credit:
Definition:
It is a form of international investment through the form
of lending and borrowing with interest rate market
between two countries.
96. Forms of International
Investment
4. The official development assistance (ODA):
Definition:
ODA is developing cooperation between the government
of a country with foreign governments, intergovernmental
organizations or transnational..
97. The areas of investment
60 years before, international investment mainly
focus on the traditional sectors: mining of natural
resources, agricultural development by investing in
plantations and agricultural product processing.
98. • Since 70 years, the field of investment has changed:
Reducing investment in the sectors of
infrastructure and farm economy
Investing in oil and gas, and some
minerals such as uranium,
titanium, platinum, ...
Investing in the manufacturing industry,
service, finance, banking, insurance,
tourism, transportation,
telecommunications...
99. The risks in International
Investment
•
•
•
•
•
•
Changes in currency exchange rates
Dramatic changes in market value
Political, economic and social events
Lack of liquidity
Less information
Reliance on foreign legal remedies.
100. FDI in the world
• FDI inflows in the world tend to move from industrialized
countries to the emerging markets such as Asia and South
East Europe.
• FDI growth in the developing economies:
Latin America and the Caribbean with 34.6 percent
growth in 2011 compared to 21.1% in 2010.
Southeast Europe increased 30.6% in 2011 from 0.8% in
2010.
The Asia Pacific region, the Southeast Asia's FDI
increase 16%.
101. FDI Inflows in the World ($
billions)
Source: UNCTAD database
103. Why Asia Pacific is the most
attractive FDI region in the world?
104. Why Asia Pacific is the most
attractive FDI region in the world?
• It is not only the most populous area in the world but also
one of the areas most vibrant economy.
• It is the most dynamically developing areas of the world
with many economic organization : APEC, ASIAN...
• Asia Pacific accounted for nearly half of global trade
value and accounts for 60% of total U.S. exports value.
105. Why Asia Pacific is the most
attractive FDI region in the world?
• Although the economic growth of the Asia Pacific region
slowed significantly in 2012 due to a number of factors
impact on the regional economy, especially the debt crisis
in Europe. However, Asia Pacific is still the region with
the fastest growth rate of the world.
• China is the second largest economy in the world and
foreign currency reserves up to $ 3.2 billion, it is actually
prospective investors to make solutions for the debt
problem in Europe.
• With the ability to export and domestic demand, countries
such as China, India and ASEAN ... will continue to
develop economic.
106. FDI inflows by host regions in Asia (millions of dollars)
Region
1
2
3
4
1996
1997
1998
1999
2000
2001
Asia
93,311
105,828
96,109
102,779
133,707
102,066
West Asia
2,898
5,645
6,705
324
688
4,133
Central Asia
2,590
3,844
3,152
2,466
1,895
3,569
96,338
86,252
99,990
131,123
94,365
South, East and 87,843
South- East Asia
Percentage of FDI flows Received by different Regions
1
2
3
4
Asia
100.00
100.00
100.00
100.00
100.00
100.00
West Asia
3.11
5.33
6.98
0.32
0.51
4.05
Central Asia
2.78
3.63
3.28
2.40
1.42
3.50
91.03
89.74
97.29
98.07
92.45
South, East and 94.12
South- East Asia
Source: World Investment Report 2002
109. Top ten FDI Countries and
Territories as of 2 July 2002
Countries and territories
Number of projects
Capital ( $ billion)
Singapore
254
6.90
Taiwan
832
5.30
Japan
339
4.12
South Korea
403
3.46
Hong Kong
234
2.82
France
117
2.04
B.V.Islands
144
1.76
Netherlands
42
1.65
Russia
41
1.51
UK
40
1.17
110. Number of projects by sector as
of 2 July 2002
Others
20%
Heavy industry
28%
Service
6%
Hotel and
4%
Agriculture
and
11%
Food industry
5%
Oil and gas
1%
Light industry
25%
111. Conclusion
• Economics and international relations are intimately
intertwined.
• The development of a country depends on so many
factors, not just economic but also natural, social or
political factors.
• The link among international trade, finance and
investment is extremely close and strongly impact to the
growth and further, the development of a country. It is
important to note that the government policies have a
strange power to change the operation of economy.