Foreign Direct Investment - Risks and Opportunities. A view from the trenches
The demise of Lehman Brothers drastically impacted global corporate inyestment flows. If Foreign Direct Inyestment (FDI) was still soaring at an all time high before 2008, it practically came to a halt by December of that very year. Not unlike in the early days of this century where the dot-com implosion lead US corporations (the major actors in transnational inyestments) practically reducing outbound FDI to zero-Ievels. Yet, notwithstanding the gloom outlook of UNCTAD's 2010 World Investment Prospects Sur-vey, companies still continue to inyest abroad. And there are signs that global FDI flows are on the uptake again. This paper first focuses on FOI trends and outlooks, with a particular emphasis on Central Europę. It explores what drives companies to invest even in these risky times, how they make inyestment decisions and what steps they take to mitigate risks. It concludes with a discussion of some key location trends covering proyen FDI destinations, FDI 'Hotspots' and so-called 'Under-the-Radar locations' The paper draws on the author's 20 years experience with International corporate inyestment decisions. It does not aspire to distill scientific truths or universally applicable rules. Instead, it seeks to offer insight into the practicalities of foreign direct inyestment decisions or a 'view from the trench-es'. (original abstract)
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