Growth of FDI

Study Question: Explain why FDI has grown so rapidly over the past 40 years. FDI has grown rapidly in the last few decades due to increasing globalization and reduction in investment barriers in many nations across the world. Encourage of free trade, establishment of trading blocs and trade treaties has encourage cross border investments and thus, more and more companies have started exploring new markets across the world. Emerging markets or developing nations across the world has presented attractive opportunities to global companies and thus, boosted FDI.

Three main national competitive advantages that U.S. firms have

What do you think are three main national competitive advantages that U.S. firms have over other firms from other countries?

Foreign direct investment

How would you define foreign direct investment? What three countries does the US most invest in? What three foreign countries invest most in the US? Do you think that FDI will increase or decrease given the current US economic crisis?

Macroeconomic indicators

Write a 1,050-1,750-word paper that addresses the following and analyzes their effects on your expansion project: NAFTA & ASEAN (THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS) • Compare and contrast foreign exchange instruments for the two trading blocs. • Include major financial data for the trade blocs including GDP. • Describe the comparative advantage(s) of your selected regional trading blocs. • Identify the major risks associated with doing business in the selected trading blocs.