3 - Institutions Technology Innovation and Sustainability Flashcards

1
Q

what is the conclusion for FDI in the following aspects:
1) Infrastructure
2) Trade Openness
3) Inflation
4) Corruption and FDI inflows
5) market size

A

1) Infrastructure can have a positive effect on FDI
2) Trade openness can cause FDI to escalate
3) Inflation can have a negative impact on FDI
4) positive AND negative link between corruption and FDI inflows
5) market size can positively and significantly influence FDI

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2
Q

what about the home countries concers regarding negative economic effect of offshore production

A

it may not be valid.
- FDI may stimulate economic growth be freeing home country resources where the home country has an comparrative advantage
- consumers may also benefit from the lower prices

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3
Q

give an example for Encouraging outward FDI by the government

A

elimination of double taxation of foreign income

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4
Q

give an example for Restricting outward FDI

A

manipulation of tax rules to make it for favorable for firms to invest at home
(or also countries restrict firms from investing in certain nations fo political reasons)

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5
Q

example for Encouraging inward FDI
what motivates them?

A

incentives to foreign fims to invest in their countries
motivated by a desire to gain from the **resource-transfer and employment effects ** of FDI

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6
Q

example for restricting inward FDI

A

ownership restraints: exclude firms from certain sectors on the gounds of national security or competition

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7
Q

“what companies have learned from losing billions in emerging markets”

which three practices correlated strongly with lower investment losses due to regulatroy, bribery and reputational risks?

starting after the great recession of 2007-2009 and ongoing until 2014

A

1) chasing quick profits instead of long-term reputation
2) avoiding locations where compliance is a moving target
3) ensuring managers and sub-contractors follow the rules and regulations

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8
Q

what encouraged the globalization?
What has been the result?

A

the rules of the WTO and the drastically reduced transaction costs of information and communication.
Resulting in relocation of the manufactoring activities from USA and Europe towards Asia as the main manufactoring base

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9
Q

consequence of the relocation of manufactoring from USA&Europe to Asia?

A

triggered protectionist tendencies and anti-free trade and protest against WTO rules in several developed countries

-> anti-globalization and outsourcing atmosphere in USA and Europe

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10
Q

One immediate benefit for the emergings countries?

A

shift in technological paradigms

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11
Q

changing nature of FDI - which sectors are affected and what are the difficulties?

A

shifting from manufactoring to services
issues: difficult to identify intangible assets, ownership adavantage and internalization advantage

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12
Q

another shift in the nature of FDI -> “Climate FDI”. give examples

A

investment projects that
- are zero or low carbon in nature
- aim to reduce the carbon footprint of economic activity
- support the reduction of GHG (greenhouse gases)

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13
Q

what can be useful abt “climate FDI” as a subcategory of “green FDI”

A

can be a helpful distinctions for policy-makers and stakeholders looking for targeted interventions to increase overall climate-supportive investment

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14
Q

define sustainable FDI

A

“development that meets the needs of the present without copromising the ability of future generations to meet their own needs”

projects contributing to any of the 17 SDGs (e.g. education, health, sus

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15
Q

what is green FDI?

A

projects using clean energy, sustainable materials, less water, recycling etc

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16
Q

name the 5 principles of sustainble development

A

1) non-substitutability of capital
2) intergenerational equity
3) Polluter pays -> internalized externalities
4) precautionary principle
5) integrated decision-making

17
Q

define sustainable FDI

A

FDI that contributes to a location’s sustainble development and gains sufficient profits without harming host locations’s interest

18
Q

Name the 3 complementary goals of sustainble FDI

A

economic development, social development, environmental sustainability