FDI-國(guó)際直接投資

ForeignDirectInvestmentIntroduction

Question:Whatisforeigndirectinvestment?Foreigndirectinvestment(FDI)occurswhenafirminvestsdirectlyinnewfacilitiestoproduceand/ormarketinaforeigncountryOnceafirmundertakesFDIitbecomesamultinationalenterpriseTherearetwoformsofFDIAgreenfieldinvestment

-theestablishmentofawhollynewoperationinaforeigncountryAcquisitionormerging（M&A）withanexistingfirmintheforeigncountry

TherearetwowaystolookatFDITheflowofFDI-theamountofFDIundertakenoveragiventimeperiodThestockofFDI-thetotalaccumulatedvalueofforeign-ownedassetsatagiventimeOutflowsofFDIaretheflowsofFDIoutofacountryInflowsofFDIaretheflowsofFDIintoacountryFDIintheWorldEconomyTrendsinFDIBoththeflowandstockofFDIintheworldeconomyhaveincreasedoverthelast20yearsFDIhasgrownmorerapidlythanworldtradeandworldoutputbecausefirmsstillfearthethreatofprotectionismthegeneralshifttowarddemocraticpoliticalinstitutionsandfreemarketeconomieshasencouragedFDItheglobalizationoftheworldeconomyispromptingfirmstoundertakeFDItoensuretheyhaveasignificantpresenceinmanyregionsoftheworld50%70%80%Figure7.1:FDIOutflows1982-2009($billions)TrendsinFDITheDirectionofFDIHistorically,mostFDIhasbeendirectedatthedevelopednationsoftheworld,withtheUnitedStatesbeingafavoritetargetFDIinflowshaveremainedhighduringtheearly2000sfortheUnitedStates,andalsofortheEuropeanUnionSouth,East,andSoutheastAsia,andparticularlyChina,arenowseeinganincreaseofFDIinflowsLatinAmericaisalsoemergingasanimportantregionforFDITheDirectionofFDIFigure7.3:FDIInflowsbyRegion($billion),1995-2008Grossfixedcapitalformation-thetotalamountofcapitalinvestedinfactories,stores,officebuildings,andthelikeallelsebeingequal,thegreaterthecapitalinvestmentinaneconomy,themorefavorableitsfutureprospectsarelikelytobeFDIcanbeseenasanimportantsourceofcapitalinvestmentandadeterminantofthefuturegrowthrateofaneconomyTheDirectionofFDISinceWorldWarII,theU.S.hasbeenthelargestsourcecountryforFDIOtherimportantsourcecountries-theUnitedKingdom,theNetherlands,France,Germany,andJapanthesecountriesalsopredominateinrankingsoftheworld’slargestmultinationalsTheDirectionofFDI50%70%80%Figure7.5:CumulativeFDIOutflows($billions),1998-2008TheDirectionofFDITheFormofFDIMostcross-borderinvestmentinvolvesmergersandacquisitionsratherthangreenfieldinvestmentsAcquisitionsareattractivebecausetheyarequickertoexecutethangreenfieldinvestmentsitiseasierandlessriskyforafirmtoacquiredesiredassetsthanbuildthemfromthegroundupfirmsbelievetheycanincreasetheefficiencyofanacquiredunitbytransferringcapital,technology,ormanagementskillsTheoriesofFDI

Question:WhydofirmspreferFDItoeitherexporting

(producinggoodsathomeandthenshippingthemtothereceivingcountryforsale)orlicensing

(grantingaforeignentitytherightto

produceandsellthefirm’sproductinreturnforaroyaltyfeeoneveryunitthattheforeignentitysells)?Answer:Toanswerthisquestion,weneedtolookatthelimitationsofexportingandlicensing,andtheadvantagesofFDI

1.LimitationsofExporting-anexportingstrategycanbelimitedbytransportationcostsandtradebarrierswhentransportationcostsarehigh,exportingcanbeunprofitableforeigndirectinvestmentmaybearesponsetoactualorthreatenedtradebarrierssuchasimporttariffsorquotasTheoriesofFDITheoriesofFDI2.LimitationsofLicensing-hasthreemajordrawbacksInternalizationtheory(alsoknownasmarketimperfections)suggestsitmayresultinafirm’sgivingawayvaluabletechnologicalknow-howtoapotentialforeigncompetitoritdoesnotgiveafirmthetightcontrolovermanufacturing,marketing,andstrategyinaforeigncountrythatmayberequiredtomaximizeitsprofitabilityItmaybedifficultifthefirm’scompetitiveadvantageisnotamendabletolicensing3.AdvantagesofForeignDirectInvestment-afirmwillfavorFDIoverexportingwhentransportationcostsarehightradebarriersarehighAfirmwillfavorFDIoverlicensingwhenitwantscontroloveritstechnologicalknow-howitwantsoveritsoperationsandbusinessstrategythefirm’scapabilitiesarenotamenabletolicensingTheoriesofFDIItiscommonforfirmsinthesameindustrytohavesimilarstrategicbehaviorandundertakeforeigndirectinvestmentaroundthesametimedirecttheirinvestmentactivitiestowardscertainlocationsatcertainstagesintheproductlifecycle

ThePatternofFDIThePatternofFDI1.StrategicBehaviorKnickerbockerexploredtherelationshipbetweenFDIandrivalryinoligopolisticindustries(industriescomposedofalimitednumberoflargefirms)Knickerbocker-FDIflowsareareflectionofstrategicrivalrybetweenfirmsintheglobalmarketplaceThistheorycanbeextendedtoembracetheconceptofmultipointcompetition(whentwoormoreenterprisesencountereachotherindifferentregionalmarkets,nationalmarkets,orindustries)ThePatternofFDI2.TheProductLifeCycleVernon-firmsundertakeFDIatparticularstagesinthelifecycleofaproducttheyhavepioneeredfirmsinvestinotheradvancedcountrieswhenlocaldemandinthosecountriesgrowslargeenoughtosupportlocalproductionfirmsthenshiftproductiontolow-costdevelopingcountrieswhenproductstandardizationandmarketsaturationgiverisetopricecompetitionandcostpressures

TheEclecticParadigmDunning’seclecticparadigm-inadditiontothevariousfactorsdiscussedearlier,twoadditionalfactorsmustbeconsideredwhenexplainingboththerationaleforandthedirectionofforeigndirectinvestmentlocation-specificadvantages

-thatarise

fromusingresource

endowmentsorassetsthataretiedtoaparticularlocationandthatafirmfindsvaluabletocombinewithitsownuniqueassetsexternalities

-knowledgespilloversthatoccurwhencompaniesinthesameindustrylocateinthesameareaIdeologytowardFDIhasrangedfromaradicalstancethatishostiletoallFDItothenon-interventionistprincipleoffreemarketeconomiesBetweenthesetwoextremesisanapproachthatmightbecalledpragmaticnationalismPoliticalIdeologyandFDITheRadicalViewTheradicalview-theMNEisaninstrumentofimperialistdominationandatoolforexploitinghostcountriestotheexclusivebenefitoftheircapitalist-imperialisthomecountriesTheradicalviewhasbeeninretreatbecauseofthecollapseofcommunisminEasternEuropethepooreconomicperformanceofthosecountriesthathadembracedthepolicythestrongeconomicperformanceofdevelopingcountriesthathadembracedcapitalismThefreemarketview-internationalproductionshouldbedistributedamongcountriesaccordingtothetheoryofcomparativeadvantagetheMNEincreasestheoverallefficiencyoftheworldeconomyTheUnitedStatesandBritainareamongthemostopencountriestoFDI,butbothreservetherighttointerveneTheFreeMarketViewPragmaticNationalismThepragmaticnationalistviewisthatFDIhasbothbenefits,suchasinflowsofcapital,technology,skillsandjobs,andcosts,suchasrepatriationofprofitstothehomecountryandanegativebalanceofpaymentseffectAccordingtothisview,FDIshouldbeallowedonlyifthebenefitsoutweighthecostscountriesintheEuropeanUniontrytoattractbeneficialFDIflowsbyofferingtaxbreaksandsubisidesInrecentyears,therehasbeenastrongshifttowardthefreemarketstancecreatingasurgeinthevolumeofFDIworldwideanincreaseinthevolumeofFDIdirectedatcountriesthathaverecentlyliberalizedtheirregimesShiftingIdeologyQuestion:WhatarethebenefitsandcostsofFDI?Answer:ThebenefitsandcostsofFDImustbeexploredfromtheperspectiveofboththehost(receiving)countryandthehome(source)countryBenefitsandCostsofFDIHostCountryBenefitsThemainbenefitsofinwardFDIforahostcountryaretheresourcetransfereffecttheemploymenteffectthebalanceofpaymentseffecteffectsoncompetitionandeconomicgrowthHostCountryBenefits1.ResourceTransferEffectsFDIcanbringcapital,technology,andmanagementresourcesthatwouldotherwisenotbeavailable2.EmploymentEffectsFDIcanbringjobsthatwouldotherwisenotbecreatedthereHostCountryBenefits3.Balance-of-PaymentsEffectsAcountry’sbalance-of-paymentsaccount

isarecordofacountry’spaymentstoandreceiptsfromothercountriesThecurrentaccountisarecordofacountry’sexportandimportofgoodsandservicesacurrentaccountsurplusisusuallyfavoredoveradeficitFDIcanhelpachieveacurrentaccountsurplusiftheFDIisasubstituteforimportsofgoodsandservicesiftheMNEusesaforeignsubsidiarytoexportgoodsandservicestoothercountries4.EffectonCompetitionandEconomicGrowthFDIintheformofgreenfieldinvestmentincreasesthelevelofcompetitioninamarketdrivesdownpricesimprovesthewelfareofconsumersIncreasedcompetitioncanleadtoincreasedproductivitygrowthproductandprocessinnovationgreatereconomicgrowthHostCountryBenefitsHostCountryCostsTherearethreemaincostsofinwardFDIthepossibleadverseeffectsofFDIoncompetitionwithinthehostnationadverseeffectsonthebalanceofpaymentstheperceivedlossofnationalsovereigntyandautonomy1.AdverseEffectsonCompetitionThesubsidiariesofforeignMNEsmayhavegreatereconomicpowerthanindigenouscompetitorsbecausetheymaybepartofalargerinternationalorganizationtheMNEcoulddrawonfundsgeneratedelsewheretosubsidizecostsinthelocalmarketdoingsocouldallowtheMNEtodriveindigenouscompetitorsoutofthemarketandcreateamonopolypositionHostCountryCostsHostCountryCosts2.AdverseEffectsontheBalanceofPayments

TherearetwopossibleadverseeffectsofFDIonahostcountry’sbalance-of-paymentswiththeinitialcapitalinflowsthatcomewithFDImustbethesubsequentoutflowofcapitalastheforeignsubsidiaryrepatriatesearningstoitsparentcountrywhenaforeignsubsidiaryimportsasubstantialnumberofitsinputsfromabroad,thereisadebitonthecurrentaccountofthehostcountry’sbalanceofpayments3.NationalSovereigntyandAutonomyFDIcanmeansomelossofeconomicindependencekeydecisionsthatcanaffectthehostcountry’seconomywillbemadebyaforeignparentthathasnorealcommitmenttothehostcountry,andoverwhichthehostcountry’sgovernmenthasnorealcontrolHostCountryCostsThebenefitsofFDItothehomecountryincludetheeffectonthecapitalaccountofthehomecountry’sbalanceofpaymentsfromtheinwardflowofforeignearningstheemploymenteffectsthatarisefromoutwardFDIthegainsfromlearningvaluableskillsfromforeignmarketsthatcansubsequentlybetransferredbacktothehomecountryHomeCountryBenefitsThemostimportantconcernsforthehomecountrycenteraroundThebalance-of-paymentsThebalanceofpaymentssuffersfromtheinitialcapitaloutflowrequiredtofinancetheFDIThecurrentaccountisnegativelyaffectedifthepurposeoftheFDIistoservethehomemarketfromalow-costproductionlocationThecurrentaccountsuffersiftheFDIisasubstitutefordirectexportsHomeCountryCostsHomeCountryCosts2.EmploymenteffectsofoutwardFDIIfthehomecountryissufferingfromunemployment,theremaybeconcernabouttheexportofjobsInternationaltradetheory-homecountryconcernsaboutthenegativeeconomiceffectsofoffshoreproduction(FDIundertakentoservethehomemarket)maynotbevalidFDImayactuallystimulateeconomicgrowthbyfreeinghomecountryresourcestoconcentrateonactivitieswherethehomecountryhasacomparativeadvantageconsumersmayalsobenefitintheformoflowerpricesInternationalTradeTheoryandFDIFDIcanberegulatedbybothhomeandhostcountriesGovernmentscanimplementpoliciestoencourageFDIdiscourageFDIGovernmentPolicyandFDI1.EncouragingOutwardFDIManynationsnowhavegovernment-backedinsuranceprogramstocovermajortypesofforeigninvestmentriskcanencouragefirmstoundertakeFDIinpoliticallyunstablenationsManycountrieshavealsoeliminateddoubletaxationofforeignincomeManyhostnationshaverelaxedrestrictionsoninboundFDIHomeCountryPolicies2.RestrictingOutwardFDIVirtuallyallinvestorcountries,includingtheUnitedStates,haveexercisedsomecontroloveroutwardFDIfromtimetotimecountriesmanipulatetaxrulestomakeitmorefavorableforfirmstoinvestathomecountriesmayrestrictfirmsfrominvestingincertainnationsforpoliticalreasonsHomeCountryPolicies1.EncouragingInwardFDIGovernmentsofferincentivestoforeignfirmstoinvestintheircountriesmotivatedbyadesiretogainfromtheresource-transferandemploymenteffectsofFDI,andtocaptureFDIawayfromotherpotentialhostcountriesHostCountryPoliciesHostCountryPolicies2.RestrictingInwardFDI

OwnershiprestraintsandperformancerequirementsareusedtorestrictFDIOwnershiprestraints-excludeforeignfirmsfromcertainsectorsonthegroundsofnationalsecurityorcompetitionlocalownerscanhelptomaximizetheresourcetransferandemploymentbenefitsofFDIPerformancerequirements-usedtomaximizethebenefitsandminimizethecostsofFDIforthehostcountryUntilrecentlytherehasbeennoconsistentinvolvementbymultinationalinstitutionsinthegoverningofFDITheformationoftheWorldTradeOrganizationin1995ischangingthisTheWTOhashadsomesuccessinestablishingauniversalsetofrulestopromotetheliberalizationofFDIInternationalInstitutionsandFDIQuestion:WhatdoesFDImeanforinternationalbusinesses?Answer:ThetheoryofFDIhasimplicationsforstrategicbehavioroffirmsGovernmentpolicyonFDIcanalsobeimportantforinternationalbusinessesImplicationsforManagersThelocation-specificadvantagesargumentassociatedwithDunninghelpexplainthedirectionofFDIHowever,internalizationtheoryisneededtoexplainwhyfirmspreferFDItolicensingorexportingexportingispreferabletolicensingandFDIaslongastransportationcostsandtradebarriersarelowTheTheoryofFDILicensingisunattractivewhenthefirm’sproprietarypropertycannotbeproperlyprotectedbyalicensingagreementthefirmneedstightcontroloveraforeignentityinordertomaximizeitsmarketshareandearningsi