Globalisation - Flows (Finance)

Question 1

why has US investment into financial flows in europe decreased

Answer 1

• it was saturated i.e. could not keep growing
• before it was mostly into emerging markets and these countries are becoming more developed now
• in troubling times investors move into safer assets

Question 2

how have the composition of cross boarder financial flows changed as a result of the global financial crisis

Answer 2

cross boarder capital flows now have more equity and less debt

FDI and equity investment have bigger proportion then bank lending

Question 3

what were the two investment booms in FDI

Answer 3

.com

pre global financial crisis

Question 4

Top 5 FDI developed market host countries in 2019

Answer 4

USA
Canada
Ireland
UK
Netherlands

Question 5

what externalities are a threat to FDI in 2022/23

Answer 5

WAR (Ukraine)

Cost of living crisis

Natural disasters and climate change

(all countries are reducing their fiscal space when they should be increasing it)

Question 6

what makes singapore attractive to foreign investment

Answer 6

reputable and large bank

gateway city to enter asian market

Question 7

what makes UK attractive to foreign investment

Answer 7

english speaking
mature financial market

Question 8

what makes the Caribbean attractive to foreign investment

Answer 8

attractive corporate tax

Question 9

how many people are employed in MNCs

Answer 9

80 million worldwide