Multinational enterprises (MNEs) interact in the global market, creating lots of jobs all around the world. Foreign Direct Investments (FDI) is the way by which they interact, investing abroad until representing the largest source of external finance for developing countries for instance (United Nations Conference on Trade And Development). No need thus to explain the importance of those FDI in the business world, which is growing more and more. Developing countries' inward stock of FDI currently corresponds to nearly one third of their GDP, whereas it was only 10% in 1980. According to the UNCTAD statistics, 53 million jobs are directly provided by the Transnational Corporations (TNCs) all around the world. Still, this amount does not take into account all the indirect jobs created, as well as the technological and managerial changes these companies bring to their host countries.
[...] (1991). Innovation and growth in the global economy. MIT Press, Cambridge, MA. Hejazi, W. & Safarian A.E. (1999). Trade, Foreign Direct Investment, and R&D Spillovers, Journal of International Business Studies 30 Third Quarter, 491-511. Rao, S., & Tang, J. (February 2000). Are Canadian-controlled Manufacturing Firms Less Productive than their Foreign -Controlled Counterparts?, Industry Canada, Working Paper # Rheaume, G. [...]
[...] But in can also take the form of a privatisation and equity investment, or of mergers and acquisitions (M&As). At last, we can find some new forms of investment, like strategic alliance, licensing, joint ventures, like it is required for a foreign company on the Chinese market for example, or even other partnership agreements. Figures First of all, as Canada is a North American country, the following figures will be presented in US Dollar or in Canadian Dollar, in order not to affect the data with exchange rates. [...]
[...] The dilemma for the home country is that those jobs would have been created home” if this investment did not go abroad (obviously). The employment and the production displacement thus imply rather negative effects to the home country (Stewart, 2007). As Canada is now a net FDI exporter since 1997, we can generally think that its lack of attraction for FDI is prejudicial for its employment and production. It is furthermore hard to determine which of the stocks or the flows are the most relevant. [...]
[...] This amount of foreign investment permits to Canada to rank 5th of the FDI flows' recipient in 2005. Considering the figure 2., it is not a surprise to notice that these biggest FDI recipient, which are part of the more active countries concerning FDI, are thus also the biggest Canada's contributors, like the United States, the United Kingdom, France, the Netherlands or Germany. The United States, mainly for geographic reasons, and probably because of the cultural similarity between the two neighbour countries as well, is contributing to 64% of Canadian's inward FDI stock. [...]
[...] Basically it is an entity controlling assets abroad. The purpose of this report will be to comment the inward FDI in Canada, before analysing its costs and benefits for the country, which will lead us to suggestions concerning policy implications Canadian's inward FDI Definition FDI can be done under five different forms. Whichever form the investor choose, a FDI is defined as the purchase of a lasting interest in order to get an effective influence or more of the ordinary shares) in the management of an enterprise situated in a foreign country (OCO Consulting). [...]
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