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A Depressing Era in Offshore Investment? |
| Section: CURRENT ISSUES / ANALYSIS |
| Author: Julian M. Weiss |
| Publication: The world & I online |
| Issue Date: 4/1/1989 |
| Size: 1,909 Words, 12,242 Characters |
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Investment practices by multinationals are undergoing major changes. This is an important trend in the world economy, since direct foreign investment (DFI) has been the principal engine of growth for nations at all stages of development in recent years. When the dust settles, say many experts, only a select group of LDCs (less developed countries), NICs (newly industrializing countries), and industrialized countries will attract capital in the way they have during the past four decades.
This is an important, yet seldom-discussed trend. Foreign investment in overseas plants, factories, and other corporate facilities has recast entire regions (such as East Asia's consumer electronics industries). It has ushered in tremendous forces of social change (as in Africa), and remains the corne...
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...apital flows are being relaxed. And restrictions on the degree of multinationals' actual ownership of offshore plants are being reviewed everywhere. To secure benefits of modern production methods, countries are mandating laws to foster joint venture arrangements. As a result of luck as well as skill, these cooperative enterprises will encourage multinationals to become multinational again. vbcrlf
(806 of 12,242 characters)
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