International economic relations Intarnational movement of capital FDI Portfolio

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Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c

The forms of international economic relations
International trade in goods and services;
The international movement of capital;
Labour migration;
International exchange of knowledge;
The international currency and settlement relations.
Timofeeva A.A. 2020 c
The forms of international economic relations (open ?)

Timofeeva A.A. 2020 c
Capital

Timofeeva A.A. 2020 c

wealth, esp. money used to produce more wealth through investment or a new business
money that used for investment or for starting a business
value that brings in surplus value
Capital is an important factor of production. It consists of those goods which are produced by the economic system and are used as inputs in the production of further goods and services.
narrow
broad
Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c

If about international movement of capital as form of international economic relations…
Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c
Forms of international capital movement

Forms of international capital movement
Timofeeva A.A. 2020 c

Forms of international capital movement
official capital
enterprise capital
loan capital
private capital
Foreign direct investment
portfolio
investments
medium and long-term
short term
predominant
Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c
FDI

Timofeeva A.A. 2020 c
A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control.

Timofeeva A.A. 2020 c
Broadly, foreign direct investment includes
mergers and acquisitions,
building new facilities,
reinvesting profits earned from overseas operations,
intra company loans
In a narrow sense, foreign direct investment refers just to building new facility, and a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor.

Timofeeva A.A. 2020 c
FDI TYPES

Timofeeva A.A. 2020 c
Horizontal: a business expands its domestic operations to a foreign country. In this case, the business conducts the same activities but in a foreign country. For example, McDonald’s opening restaurants in Japan would be considered horizontal FDI.
Vertical: a business expands into a foreign country by moving to a different level of the supply chain. In other words, a firm conducts different activities abroad but these activities are still related to the main business. Using the same example, McDonald’s could purchase a large-scale farm in Canada to produce meat for their restaurants.

Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c
Platform: a business expands into a foreign country but the output from the foreign operations is exported to a third country. This is also referred to as export-platform FDI. Platform FDI commonly happens in low-cost locations inside free-trade areas. For example, if Ford purchased manufacturing plants in Ireland with the primary purpose of exporting cars to other countries in the EU
Platform:

Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c
FDI+ and -

Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c
For country
Disadvantages of Foreign Direct Investment
Displacement of local businesses
Profit repatriation

Timofeeva A.A. 2020 c
For company

Timofeeva A.A. 2020 c
FDI in strategies

Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c
FDI in numbers

Stock of direct foreign investment - abroad:
$33.6 trillion (31 December 2017 est.)
$28.4 trillion (31 December 2016 est.)
$26.2 trillion (31 December 2014 est.)
The international movement of capital
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Timofeeva A.A. 2020 c
Forms of international movement of capital are typically installed in countries investment and banking legislation
Why attract Foreign Direct Investment
FDI / number
Definition of FDI in comparison with portfolio investment
Why attract Foreign Direct Investment? (video)
Types of FDI (video: what is FDI))
Types of FDI (video: what is FDI))

Foreign direct investment, net outflows (BoP, current US$)
Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c
top 15 countries and jurisdictions receiving FDI inflows:

Timofeeva A.A. 2020 c
Portfolio investment

Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c

Timofeeva A.A. 2020 c
What are American Depositary Receipts (ADR)?