Financial flows research project

What trends are there in FDI?(Both regional as global) FDI’s have grown increasingly over the last decade. The region southeast Europe has gained inflows of FDI but kept stable at this high level. The FDI to the Russian Federation has doubled over the last years. Hong Kong remaining the biggest receiver. The largest host region is the European union has a whole. Developing countries are starting to gain more inward FDI, and Europe as well as the US and Asia introduced more outward FDI. However the least/less economically developed countries still stay on a low scale both ways.

There was a downfall in 2009 however they say that in a years time the (from there) the FDI’s will be on track again. The biggest affect it has had was/is the cross border FDI, from family to family. This helps stimulate the countries economy as well. Regionally we can see (statistics of 2011) that sub-Saharan Africa used the FDI’s very efficiently. It reached its maximum point in Asia and Japan for example is gaining power in being an investor of FDI outflows. To conclude overall FDI’s are increasing they help boost the economy. The trends are slowly changing from Europe being the main FDI stimulators, to Asia.

2. What are the largest TNC’s (with small descriptions) Biggest transnational companies General electric (us) –major electricity/technology/electric company, placed in more than 160 countries, its revenue is 147.3 billion US$.

Royal Dutch Shell (NL)- major oil and gas company it operates in 90 countries world wide, the revenue is 467.1 billion US$ Vodafone (UK)- major telecommunication company, operates in more than 40 countries, its revenue is POUND 46.4 billion. BP (UK)- also a major gas company, it operates in over 80 countries and has a total revenue of US$388.2 billion. Toyota(JP)- major automaker company, it operates in 23 countries, and has a revenue of 70.3 billion dollars. Exxon Mobil (US)- is a major oil and gas company, it operates in 21 countries and has a revenue of 486 billion US$.

Total (FR)- is a major oil company, operates in more than 130 countries its revenue is 164€ billion. E.ON (DE)- is a major electric provider, operates in over 30 countries and its revenue is 112€ billion. EDF(FR)- is the largest electric utility provider of the world, it operates in more than 20 countries, its revenue is 65€ billion. ArcelorMittal (LU)- is a major steel manufacturing company, it operates in over 22 countries, its revenue is 49.4$ billion. Volkswagen (DE)- major car manufacturing company, it operates in 153 countries, its revenue is €192 billion. GDF Suez (FR)- is a major electric utility company, it operates in 150 countries, its revenue is €90 billion.

3. Pick 2 contrasting countries and describe how they are different and the consequences this has on the individual country I chose the LEDC Ehtiopia and the MEDC the United Kingdom. http://www.studymode.com/essays/Comparing-And-Contrasting-An-Medc-And-1116473.html

out of total GDP Ethiopia’s net inflows covers 0.97 by FDI'S.

Use graphs

1,5 A4

To be handed in on paper, typed, Arial 11 and marked using the mark band/grades descriptors as stated by IBO

Ethiopias FDI inflow %GDP http://www.indexmundi.com/facts/ethiopia/foreign-direct-investment

http://unctad.org/en/Docs/iteiia20072_en.pdf www.unctad.org/wir http://unctad.org/en/PublicationsLibrary/wir2012overview_en.pdf