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On the basis of previous studies of foreign direct investment (FDI) in insurance services industries by Moshirian (1997 and 1999), this study applies the similar model and variable with those previous studies to present analysis and discussion about FDI in insurance services industries in America from 1987 to 1998. As the extension on prior studies, this study found that the relative wage rate of the US versus the source countries, and FDI in manufacturing industries both are highly important determinants of FDI in insurance services industries in America in statistic. However, this result is different from Moshirian’s (1997), due to majority of factors which are valued important in his study are unimportant in this study. The disparity between different results indicates that along with the changes of political environment, economic climate, investors’ behaviors and methodological limitation, there are disparate determinants in different periods. As a result, it is necessary to testify it in further investigations.…
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International business has grown so rapidly in the past decades because of strategic imperatives and environmental changes. Along with the growth of international business, some more issues have been becoming very phenomenal in relation to ways of doing international business as well as aspects of redefining global competition. In this essay, will cite some articles to interpret the phenomenon related to international business, such as Foreign Direct Investment (FDI) and Anti-dumping issue which are mostly associated with events of international business in China.…
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5. The modern international trade theories explain trade from a firm, rather than a country, perspective.…
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Along with the constant deepening of modern international trade globalization, various economic elements of modern commerce such as: labor, goods, service and capital etc. have begun to span the geological border of each country and been widely circulated in the world under the promotion of the globalization. Especially the capital internationalization whose main form is international direct investment is the most frequent. The capital internationalization includes two dimensional contents: on one hand, it's an international of investor structure; on the other hand, it's also an international of enterprise organization structure, including the internationalization of enterprise headquarters, area headquarters, operation headquarters, capital headquarters or branch institution. The above two internationalizations supplement each other, develop the transnational operation network of the enterprise, promote the internationalized operation of the enterprise and reinforce or improve the international competition advantage of the enterprise.…
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With the advent of the improvisation of technology in the transport, communication and information transfer like internet, the providence of the small businesses and large scale businesses as well was greatly changed in the last five decades. The pursuit for the expansion of market place is no longer limited to a place or country but it has become a global competition. Besides, it was reported that the world trade expansion has been 20 times compared to its business in 1950, and overcame the world’s output by six and a half times in 2001 (WTO, 2001). Especially the small businesses were reported to have increased their cross-border investments, which are directly responsible for the massive increase in the outflow of FDI annually from $25 billion (1975) to $1.3 trillion (2000) setting up a record (UN, 2001).…
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The United States is the largest destination of foreign direct investment (FDI). This article analyse the reason why the United States is so attractive to foreign investors. The analysis can be divided into two parts. In the first part, the author discusses the open economy of the United States in the global environment. The political and economic environment enables the United States to absorb large amount of FDI. The second part focuses on domestic level. The United States is the third largest country in both size and population. It also has rich natural resources, and occupies 27% of the world’s coal reservation. The huge domestic market enables the United States to attract and digest FDI. Another important factor of FDI flows is the financial markets of the United States. At the end of the article, the author discusses the challenges the United States faced especially after the Global Financial Crisis (GFC).…
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Since the business requires new procedures for the international market, it will also help in better utilization of trends, resources and technologies and human resources for common interests of the countries and cross-border relations. It is necessary to analyze the main gears of international trade like foreign direct investment (FDI) of countries, knowledge and intellectual, IT, employment, recruitment, remittance and international reputation.…
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Foreign direct investment (FDI) has grown dramatically as a major form of international capital transfer over the past decade. Between 1980 and 1990,world flows of FDI-defined as cross-border expenditures to acquire or expandcorporate control of productive assets-have approximately tripled. FDI has become a major form of net international borrowing for Japan and the United States (the world’s largest international lender and borrower, respectively). Direct investment has grown even more rapidly of late within Europe. To what extent is this sudden worldwide surge in FDI explained by traditional theories? These theories predict the scale and scope of multinational enterprises by looking to differences in competitive advantage, across firms or countries, that might lead to the extension of corporate control across borders. So, for example, better technology, management capability, and product design; stronger consumer allegiance; and greater complementarities in production or use of technology can allow a domestic firm to control foreign assets more productively than would a foreign firm and could therefore predicate direct investment. In many cases, these theories also explain why an enterprise’s alternatives to FDI-domestically based production or licensing of foreign-based production-are less efficient than direct control of foreign based operations (see, e.g., Caves 1982; Vernon 1966).Traditional theories are very useful for explaining basic long-term patterns of FDI. For example, they help understand the behavior of U.S. firms during the post-World War I1 period (the experience on which these theories were honed). At that time, advanced U.S. firms were superior in technology and well established in foreign markets. U.S. firms tended to move overseas to retain competitive access (or to preempt competitors’ access) to those markets and, in the process, met with relatively little competition. These theories also help us understand why the tide of U.S.…
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1 Preface ....................................................................................................................................................... 2 2 Introduction ............................................................................................................................................. 2 2.1 Porter’s Diamond model ............................................................................................................ 2 2.2 Dunning’s Eclectic Paradigm ................................................................................................... 3 3 Comparison of Competitive Advantages ..................................................................................... 3 3.1 Industrial Policy ............................................................................................................................ 3 3.2 Education ......................................................................................................................................... 4…
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Introduction A remarkable feature of the recent wave of regional trade agreements (RTAs) is the inclusion of a trade in services component in many agreements. At the end of 2006, the WTO counted 54 such services accords, of which only 5 predate the conclusion of the Uruguay Round.1 The rising interest in services trade agreements reflects a number of developments. First, as tariffs have come down, policymakers have turned their attention to other barriers restricting international commerce. The growth of world goods trade and the emergence of international production networks have highlighted the importance of an efficient services infrastructure—whether in telecommunications, finance, logistics, or legal advice. Market opening in services offers the prospect of performance improvements in services and allows goods producers to draw on multinational service networks in organizing their business. Second, technological progress has vastly expanded the range of services that can be traded crossborder. The well-known outsourcing phenomenon has led to the emergence of new dynamic export industries in services, which hold significant potential for low-wage developing countries. Finally, many governments have transferred the provision of infrastructure services to the private sector, expanding the scope for foreign participation in services. Indeed, services FDI has grown faster than total FDI in recent years, as service providers from…
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INTRODUCTION 1. Problem statement Industrialization and modernization of the economy and proactive international economic integration are the pressing issues for countries at low level of economic development. Raising the level and extent of the resources and building up a modern and sustained economic structure are of the core contents. Structural transformation becomes an objective factor of the development of national economy in the globalization era. FDI has an important role and through FDI, the host country has an opportunity to participate in the international division of labor, thereby raising the level of development, creating a driving force for structural transformation. Vietnam has always paid a great attention to attracting FDI to supplement the investment capital for development, promoting economic structural change. FDI has spillover effects to the economic sectors, and contribute to modernization of the economy, but FDI does not always have a positive impact. Therefore, if not analyzing of weaknesses in attracting and using FDI, we cannot draw possible solutions to promote positive and minimize negative impacts from to transfer funds ECONOMIC STUCTURAL. Ho Chi Minh City, a major economic center of the region and the country, has a dominant role over the capability of the country’s economic growth. The city is the one that leads the attraction of FDI, has the advantage in building a modern economic structure and gradually implement development in depth. Analyzing whether FDI actually affects the economic structural change or not? If so, to what extent? And how to promote the positive aspects and minimize…
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Recently the most debated topic in India has been government allowing FDI in the Indian economy. It is one of the most critical reforms taking place in Indian economy post the great reform period of 1991. From vendors to politician everyone is talking about FDI, and many are just prattling without acquiring the full knowledge of the reforms. Not only the opposition but even some of the allies of the ruling party are raising hue and cry over the new policy of allowing 51% FDI in multi-brand retail in India. And on the other hand the government is trying to prove they are correct, but who is going to agree with already disreputed government? It is really very difficult to trust the government, but this time the picture seems to depict truth.…
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Wall-mart plans to have 15 stores by March and enter new states like Andhra Pradesh, Rajasthan, Madhya Pradesh and Karnataka.…
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The direct FDI impact in the short term from retail chains will be modest. If you look at the numbers -- as per [financial information services firm] CEIC Data -- FDI in 2008 was in the ballpark of US$35 billion and declined in 2009 and 2010. FDI in 2011 came in at around US$27 billion or so. So if we ask the question: Will international retail chains in the shorter term -- an 18-to-24 month horizon -- bring in US$8 billion to get back on track, the answer is probably not.…
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As a result Foreign Direct Investments (FDIs) may be regarded as the economic manifestation of globalization. As growing in size (FDIs) have developed in a large scale until they become part of our daily life, their presence in our life is significantly remarkable in fact they have a great impact on the economy of the host country as a whole as they affect the customer buying behavior especially because those international corporations use different ways to affect the purchase decision of the consumer. Among those tools we may mention the 4 Ps (Product, Price, Place, and Promotion) with some other social, psychological, cultural and personal elements. So all those techniques are threatening local firms and turning on the view…
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