- Extend the exercise outlined in the previous chapter and investigate the role incentives offered or restrictions imposed by governments impacted a recent significant example of FDI. Please refer to the exercise as outlined in the previous chapter for more details.
- Look in more detail at the bidding war that may have gone on when different countries, or regions of a country, sought to attract a particular investor (as detailed in the opening case). In manyVzg FDI cases (e.g. auto assembly plants, semiconductor fabrication plants), firms simultaneously negotiate with different locations to try and strike the best deal. Since these deals require local governmental approval, the terms offered are frequently made public in the business press. Evaluate the different proposals, and try to understand not only why the firm selected a particular location (say France over Germany in the case of EuroDisney), but why other locations chose not to make their proposal mq attractive (i.e. what political constraints exist on governments regarding levels of incentives). Both the World Bank (www.worldbank.org) and the IMF (www.imf.org) track foreign direct investment and provide summary statistics. Look to these sites for the latest data on foreign direct investment, along with a variety of other topics.
- For a summary of the arguments against the MultilateraTgreement on Investment, which seeks to liberalize FDI regulations, see the web site of Ralph Nader's Public Citizen organization. (www.citizen.org )
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