Global Foreign Direct Investment And International Production

3809 Words16 Pages
a. Set out a clear summary of key changes relating to global foreign direct investment and international production in 2014 over the previous year. You should include an accurate description of salient trends in the data e.g Greenfield investment and cross – border M&A. (Word-guidance 750) By Geography ‘Global FDI flows rose by 9 percent in 2013 to $1.45 trillion from $1.33 trillion in 2012’ (UNCTAD, 2014) Between 2012 and 2013, FDI inflows increased in all major economies - developed, developing and transition economies. FDI flows to developed economies increased by 9 percent, reaching $566 billion, for developing countries they achieved a new high of $778 billion and inflows to transition economies grew by 28 percent to $108 billion and accounting for 7percent of global FDI inflows. ‘Developing Asia remains the world’s largest recipient region of FDI flows.’ (UNCTAD, 2014) All sub regions of Asia saw their FDI flows rise; however, the west of Asia had their fifth consecutive decline in FDI. FDI inflows were also up in the other major developing economies such as Africa, up 4 percent and Latin America and the Caribbean were both up 6 percent, excluding offshore financial centres. After the sharp fall in FDI in 2012, developed economies recovered and their FDI increased 3 percent, however, it stayed at a previously low share of total global FDI flows of 39 percent, and still 55 percent below its highest point in 2007. For the second year running, developing countries
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