Over the past decades Latin American countries have been in transition and relatively high growth rates were observed. Constant economic reforms led to a reduction in poverty in some regions with some exceptions. Latin American countries face many challenges but also they are niches of opportunity. Across regions a high sense of inequality and low penetration of technology are among the most recognizable challenges. In this regard, FDI works as the main engine for Latin American countries and has been increasing steadily over the recent years. Latin America may therefore include FDI as a key component of their modernization strategy, because of the potential benefits FDI is likely to generate to their economies. In particular, Latin American …show more content…
(Williams, 55-77, 2015) Governments in the region, for example, have integrated their economies with the global economy by reducing trade barriers, privatizing state-owned enterprises, and removing controls on prices and capital accounts (Hernández and Parro, 2008). Previous investigation regarding the potential differential effect of the determinants of FDI in Latin America and the Caribbean countries relative to a globe sample was made, and was able to conclude that in comparison with other developing countries, L.A provides some evidence, that better governance in L.A provides greater incentives for foreign investors, given that there is some type protection of intellectual property rights in these countries. (Williams 73, 2015). Pertinent …show more content…
Much research on FDI and IPR has been done during recent years and although many economists have recognized the role of IPR in acknowledging the issues of technology diffusion and the generation of new technology, studies have also criticized the role of the owners of IPRs over the market. On the other hand, the main focus on FDI is directly linked to technology transfer, from L.A countries’ perspective FDI has been seen as the main provider of technologies and skills, that are crucial and necessary for L.A countries to attain sustainable economic development. Several economists have investigated ways of transferring technology, however, all of them agree that the most significant and efficient way to transfer technology is through FDI. Ideas and knowledge are public goods, non- rival and non- excludable. In this sense everyone has the right to imitate it or acquire it. Because the generation of technology is involved with costs, not protecting the interests of innovators can result in a lack of investment in such areas and can result in a market failure. A well-structured IPR regime generates a temporary monopoly to innovators and enables them to achieve rents in order to have a return on their investments. ( Dhar and Joseph, 2012), Hence, countries that lack an IPR regime may suffer from low FDIs, due to the fact that foreign
According to Moosa (2002), “Hymer (1976) organized the industrial organization hypothesis. Kindleberger (1969), Caves (1982) and Dunning (1988) further explained the hypothesis. This theory assumes that the firms when it establishes an enterprizes in another country it suffers from many disadvantages in comparison to local investors. The cultural aspects, languages, legal system and other factors play an important role in determining FDI. But there is increase in FDI. The theory explains about why firms invest in foreign countries. But the theory fails to explain the motivation for choosing the locations. This theory explains the expansion of FDI is due to capital, management, technology, marketing, and access to raw materials, economies of
To begin describing how has been the growth and progress of FDI in Mexico it is important to define FDI itself. According to the OECD Economic Outlook of 2003, Foreign Direct Investment is “an activity in which an investor resident in one country obtains a lasting interest in, and a significant influence on the management of, an entity resident in another country. This may involve either creating an entirely new enterprise or, more typically, changing the ownership of existing enterprises (via mergers and acquisitions)” (157).
The strong influence of U.S. economy on Mexican one is confirmed analyzing Exhibit 3 with respect to foreign direct investment and exports. United States accounts for more than 45% of total FDI inflows in Mexico and, even if the Country is actually the largest host of FDI in Latin America, it’s undeniable that accordingly with economic downturns in the U.S. the figure of FDI in Mexico declines significantly (Bureau of Western Hemisphere Affairs, December 2010) like happened from 2007 to 2009 (Exhibit 4). The same mechanism act also with exports because U.S. attracts almost 80% of Mexican exports thus during periods of crisis in the U.S. Mexico suffers slowdown in foreign trade (Exhibit 5).
FDI allows the home country to invest into the host country to produce, advertise, and distribute products, in order to upsurge their market share and provides a long-term investment and enhancement. (Moosa, 2002)
Many of the many positive things Latin America is doing for its economy is Improving communication and transportation. This will cause the infrastructure to grow and eliminate trade barriers. Latin America is also passing laws to distribute farmland more fairly to the people as well as expanding their service industries. This will open up Latin America to more trade opportunities. In order to boost their economy,
Mexico is the top trading nation in Latin America and the ninth-largest economy in the world. No country has signed more free trade agreements – 33 in all, including the two biggest markets in the world, the US and the EU. Altogether these signatory countries make up a preferential market of over more than billion consumers. Much of the FDI in Mexico is attracted by the country’s strategic location within the North American Free Trade Agreement, which has positioned it as a springboard to the US and Canada. Other attractions are competitive production costs and a young, skilled workforce, together with political stability and an open economy.
In the novel Watership Down Richard Adams has created many diverse and complicated characters, some easier to like than others. For instance, I like Fiver because he is an innocent little rabbit, who happens to have endowed a very special power although he is the smallest and born last. This intriguing ability to foresee what is to come and the cryptic messages that accompany this are very thought provoking. They make me anticipate what he has to say about any situation knowing that it will be crucial to the plot. Also I see a bit of myself in him, he is sympathetic, sensitive, a worry wort but really just wants to make sure that everyone is well and safe. “Believe me, something very bad is close upon us and we ought to go away”(Adams 9) Next, Bigwig who although at times can be
Chile has become a market-oriented economy characterized by high levels of foreign trade, strong financial institutions and sound policy that have given it the strongest sovereign rating in South America. Over the last decade, FDI has represented an annual average of over 6 percent of Chile’s GDP. Exports of goods and services accounted for approximately one-third of GDP, with commodities making up three-quarters of total exports. Copper provides 19% of government revenues. The mining sector attracts 50.1 % of implemented FDI under DL600, followed by services (26.6 %); electricity, gas and water (10.9 %); manufacturing (7.9 %); construction (2.4 %); transportation and communications (1.7 %); and agriculture and fishing (0.5 %). According to
After a long history of dependence on a few traditional exports, followed by import substitution in the 1960s and 1970s, and a debt crisis in the early 1980s, Costa Rica launched an aggressive attempt at diversifying production and exports in 1985. The new approach to development consisted of two main elements: pursuit of free trade agreements and the attraction of foreign direct investment (FDI). Costa Rica has been remarkably successful in attracting FDI. It is the only country in Latin America where most FDI has gone to manufacturing over the last decade, and it stands out even further for its ability to attract FDI in high-tech sectors.
Evan Ramsey, snuck a shotgun into his high school and shot a student and the principal and wounded two others. He claims that a video game, Doom, distorted his version of reality: "I did not understand that if I pull out a gun and shoot you ... you're not getting back up. You shoot a guy in Doom, and he gets back up. You have got to shoot the things in Doom eight or nine times before it dies."(Fletcher Lyndee Christmas News) Even though numerous students demonstrate that playing violent video games leads to increased aggression, do video games really cause violent behavior because no definitive links exists between playing video games and common violence and if video games do cause bad behavior then why are
The most apparent benefit for nations that choose to enter into Free-trade Agreements with the United States is investment. For Latin American nations seeking to build wealth and inspire innovation, foreign investment can be a major game changer. Unsurprisingly, the United States exports and imports far more products from nations with free-trade agreements in place than from Non-FTA countries. Despite the recent downward trend in the value of U.S. currency, American investment continues to have dramatic effects on the growth of partner nations. For instance, in Chile their particular free-trade agreement is projected to increase economic growth by half a percentage point, a modest but meaningful impact. Not to mention the three months following the entry of the U.S.-Chile Free Trade Agreement, total U.S. exports to
The authors first outline the theoretical rationale for their case. They make the point that inbound technology transfer, for example, can help to improve the knowledge and capabilities of all firms within the country, creating a multiplier effect whereby the foreign direct investment has broad social benefits that extend far beyond the initial area of investment. Such knowledge would therefore be considered a public good, the authors contend, and that there is a price that can be paid to acquire such a public good.
In Shakesperes play, Macbeth, Lady Macbeth was a woman of single purpose. She is seen as a mainly focused character throughout the duration of the play, where she provides a connection of a unnatural realm between the witches and reality. Lady Macbeth uses her feminine qualities to manipulate Macbeth into killing duncan, and gain life long power with fortune. As Macbeth has his masculinity evoked for being soft hearted and weak minded when it comes to lady Macbeth along with her Torturous yet poised feminine assets.
The second objective of this is paper is to briefly discuss the sources of the FDI flowing into the Caribbean region. . Most of the information was collected from the Economic Commission of Latin America and the Caribbean as it is the leading source of information on investment in the region. Foreign Direct Investment into the Caribbean comes from all over the world and not from just the United Kingdom and the United States of America as most would expect. Canada as well as Latin American countries have begun to increase their investments in the region. Additionally, investments originating from the Asia have also been expanding over time with countries such as Japan and Korea capitalizing in the industrial sectors. Additionally, as relationships between China and the English- speaking Caribbean deepen and strengthen, the FDI inflow into the region from China has also multiplied. There is some presence of Indian investment but this is predominantly in countries with a high concentration of Indian descendants such as Trinidad and Tobago. Baroda Bank (India’s International Bank) located in both Trinidad and Tobago as well as the Bahamas is the largest Indian investor but there are other small companies operating as well (ECLAC 2012).
McCalman (2005) tested the endogenous model for 27 most developed countries. Findings of the study showed that, in the short run majority of the countries looses due to a distribution of wealth to foreign owners of technology. However in the long run, when the TRIPS1 provided incentives to research efforts, all countries benefited. Smith (2001) examined the simultaneous impact of IPR protection on United States exports, affiliated sales and licenses to unaffiliated foreign firms in a sample of 50 developed and developing countries using a variant of the gravity equation. Results suggested that strong IPR protection increases the benefits of locating abroad and leads to increase in affiliate sales and licensing relative to exports, particularly in countries with strong initiative abilities.