Essay --

To: Dr. Rick Wilson, Director of International Market Assessment From: Cierra Smith Date: March 11, 2014 Subject: HW #2: The Fostering of a More Favorable FDI Environment Overview Whether it be for the purpose of liberalization, promotion for a favorable environment, or some other associated motive, reports have recognized annual global increases in countries partaking in activities related to foreign direct investment. Indeed, there have been particular increases in investment policies, regulations and restrictions, in developed, developing, and transition economies respectively. In this manner, countries are able to maximize the positives and minimize the negatives for a more fostered regulatory environment. Although regulatory environments can be typically rewarding, there lies risk for the less favorable concept of investment protectionism. Investment Trends Overall, analysts have noticed a dramatic increase in the adoption of various investment trends, predominantly policies involving the liberalization and privatization for the sake of services, investment promotion and facilitation, and domestic and foreign investments. With regards to liberalization and privatization, China raised foreign investment ownership by 16 percent. Similarly, India raised foreign investment ownership by a staggering 25%, and in addition, liberalized several industries comprising of FDI. Correspondingly, European and Asian regions have reportedly sought out the trend of industrial promotion and facilitation measures for the purpose of magnetizing foreign investors and promoting investment. For example, China simplified procedures regarding capital flows and currency exchange quotas for foreign firms, and Pakistan sanctioned acts promoting the z... ...of these investment restrictions. In an attempt to avoid such casualty, there lies a proposition for a more defined implication of â€Å"investment protectionism† and its measures involved. One might suggest a possible addition onto the current investment publications and reports, or rather technical assistance promoting a sizable amount of regulation with regards to FDI policies (in addition to general investment restrictions). Additionally, UNCTAD’s Investment Policy Framework for Sustainable Development (IPFSD), consisting of investment policymaking principles, national investment guidelines, as well as design options, has the capability to function as a reference. Taking such action, as well as using such resources can foster a more hospitable investment environment, whilst still taking into account the government’s Utilitarianism intents. Cierra Hofstra Student