Should developing nations limit foreign investment

1
 Should developing nations limit foreign
investment ?

• By
• Li Ching
• John Hammer
• Lada Morrow
• Peerapol Oraintara

2
Benefits of FDI for Developing Countries.

• Technology and infrastructure
• Human capital formation and capital inflow
• Contribution to international trade
• Competitive business environment

3
Social Benefits of FDI

• Improving of environmental conditions
• Improving social conditions

4
FDI and Technology transfers

• Subsidiary in a foreign country
• Transfer of new production technology, machinery,
  documentation of exploitation
• Training of employees
• Roads, homes for new employees

5
FDI and Human Capital Enhancement

• Construction workers
• Factory workers
• Management

6
FDI and Capital Inflow

• Investments in stock market
• Payments for exported goods

7
FDI and Competition

• New strategic alliances
• Increasing degree of concentration in national
  markets
• Closure of weaker enterprises
• Healthier degree of competition
• Openness to international trade

8
FDI and Trade Integration
9
FDI and Social Issues
10
FDI and Domestic Investment
11
Bell Helicopter China Program

• Examples
• Direct Investment and Joint Venture

12

• Bell Civil Helicopter Strategy
• Emerging China Market
• Bell Chinas Vision

13
Bell Civil Helicopter Strategy

• Cost Reduction Improve Bells profitability on
  current aircraft and earn the right to grow
• Improved Products Upgrade out current fleet and
  improve share
• Expand Markets Enter currently untapped markets
  and extend the value stream

14
Emerging China Market

• Huge Opportunity
• Average 8.5 GDP growth in past ten years
• Worsening ground traffic complex terrain
• 0.06 helicopter per million population VS average
  3.9

15

• Favorable Macro Environment
• Chinas entry into WTO in 2005
• Govt opening up lower air space
• Focal Point of Competition
• China is the next major market
• Euro copter early mover advantage
• Public mission/white collar buying emerging

16
Bell Chinas Vision

• A premier player in Chinas transportation
  modernization, driven by product leadership and
  customer experience

17
Benefits for China from Bell Helicopter

• Direct Investment to open Beijing Shanghai
  business center build two teams first then
  create more centers in different regions to make
  more benefits for both countries
• Joint Venture Investment is to build relationship
  with Beijing/Shanghai government functions (CAAC,
  law enforcement, EMS, offshore oil, media, and
  utility) in order to create job opportunities for
  long term plan

18
Conclusion

• Foreign direct investment is a key ingredient in
  economic growth. It can impact the host economy
  through a variety of channels by adding to
  investable resources and capital formation by
  transferring technology, skills, innovative
  capacity, and organizational and managerial
  practices between countries and by accessing
  international marketing networks.

19

• Questions ?