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Dr. Jean-Marc F. Blanchard's picture

Slow and Steady Wins the Race? Pondering the Japanese Corporate Reaction to Brexit

In 2016, the United Kingdom (UK) voted to leave the European Union (EU). “Brexit” fueled considerable anxieties in the Japanese business world, which is the second largest source of foreign direct investment (FDI) in the UK. This was hardly shocking given the latter’s extensive involvement in the UK.

Dr. Jean-Marc F. Blanchard's picture

Dirty Foreign Direct Investment? Chinese Outward FDI and Pollution Pathologies

In the 1970s, Tokyo adopted a conscious strategy to encourage outward foreign direct investment (OFDI) by Japanese firms as a way to mitigate the poisonous pollution flowing from Japan’s economic miracle.

Dr. Hwy-Chang Moon's picture

The Global Trade War and Korea’s FDI Strategy

Concerns about the possible negative impact on Korea’s economy from the global trade war, sparked by the escalation of American trade protectionism, are serious and real. However, aside from what news reports discuss as a potential threat to world trade, the most critical area that deserves our attention is foreign direct investment (FDI).

Dr. Amitendu Palit's picture

Investments and Connectivity: Digital Capacity Matters

The Belt and Road Initiative (BRI) and upcoming regional connectivity plans like the Asia-Africa Growth Corridor (AAGC) should stimulate foreign direct investment (FDI) inflows in countries getting connected and developing new industrial and other capacities. These investments, among other factors, would be driven by local and national capacities to do business across cyberspace. Discussions on connectivity often overlook this vital element as they focus on land and sea links.

Dr. Jean-Marc F. Blanchard's picture

Vietnam, Special Economic Zones, and the “Problem” of Chinese FDI

To spur economic development, Vietnam has been, among other strategies, moving to establish special economic zones (SEZs). As elsewhere, these SEZs offer special privileges like long-term leases up to 99 years, tax breaks for companies and workers, and discounts on water and other service charges. In Vietnam’s case, SEZs recently have become a lightning rod for public protest rather than a cause to celebrate Hanoi’s economic acumen.

Mr. Naoyuki Haraoka's picture

Pondering National Security Concerns as a Basis for Trade and Investment Barriers

In March, United States (US) President Donald Trump decided to raise tariffs on steel by 25 percent and on aluminum by 10 percent for national security reasons. This raised concerns about possible retaliation by US trading partners that might lead to a damaging cycle of trade actions that shrank world trade and spurred a global depression. US national security economic-related worries pertain not only to trade but also to foreign direct investment (FDI), especially high-tech FDI, because an increasing number of civilian technologies can be adapted for military use.

Dr. Jean-Marc F. Blanchard's picture

Mapping out Your Maps: Gaps over Territorial and Maritime Views

Recently, GAP, an American apparel firm, caught fire in China because one of its t-shirts selling in Canada had a map of China that did not include Taiwan or South Tibet. This incident follows several other ones involving well-known multinational companies (MNCs) such as Germany’s Audi and Daimler Benz, the US’s Marriott International, Delta and United Airlines, and Medtronix, and Spain’s Zara.

Dr. Jean-Marc F. Blanchard's picture

Multinational Corporations and Industrial Parks, High-Tech Zones, and Special Economic Zones: Hitting it out of versus zoning out in the Park

Countries around the world are aggressively constructing industrial parks (“Parks”), high-tech zones (HTZs), and special economic zones (SEZs). They hope incentives such as free or discounted land, lower taxes, and lighter regulation coupled with improved infrastructure, better trade opportunities, and high-quality administration will yield multiple benefits. These include increasing the amount of foreign capital they obtain, facilitating entry into global production chains, and upgrading their scientific capabilities.

Dr. Hwy-Chang Moon's picture

Sustaining the Development of Korean FDI in China

Korean Foreign Direct Investment (FDI) in China has significantly decreased in recent years, particularly because of restrictive Chinese policies resulting from Korea’s decision to deploy the Terminal High Altitude Area Defense (THAAD). Illustrating this, in 2017 it was 50 percent lower than its recent peak in 2013.

Dr. Scott MacDonald's picture

Rising Chinese FDI in Grenada’s Future

China’s interest in the Caribbean has increased considerably over the past decade. Most Chinese foreign direct investment (FDI) has been directed to those countries with natural resources or geo-strategic port locations—e.g., the Bahamas, Guyana, Suriname, and Jamaica. However, Chinese FDI has been active in other Caribbean countries as well, including Grenada, where it jumped from USD $4 million in 2006 to $14.5 million in 2013.

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*Blogs represent the views of their authors and are not necessarily endorsed by the Wong MNC Center, its Board of Directors, or its Advisory Board. They are intended for the non-commercial use of readers in order to foster debate and discussion and to facilitate and stimulate research.