Foreign investments
12 important questions on Foreign investments
What is foreign investment
Explain how FI is regulated
It can be used to promote or restrict FI: screening + regulating FI applications, which depend on 2 things:
- Differs per country from open (minimal) reg. To closed ( strong reg. & supervision)
- Open economies might have less strict regulations than closed ones also transitional economies face stricter regulations.
What is the purpose of the national law that governs FI
- Promoting: Local productivity + technical development
- Encouraging: Local participation
- Minimising: Foreign competition in economic areas already served well by local businesses.
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!
I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.
Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.
Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!
Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!
Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!
I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.
I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.
For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!
I immediately started to enjoy learning again, and my grades soared. All of a sudden, everything went better. I highly recommend Study Smart to all students..
Being able to create my materials online made the process of studying so much smoother and quicker. I no longer have to spend a huge amount of my time on creating my summaries.
At first, my notes were a mess. Now I use Study Smart to take my notes in a perfectly structured way. It helps me to save a lot of time and do other things I enjoy.
Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.
Hi Chris, I would like to thank you very much. Last year I scored C on a course, and this year I got an A+ thanks to your method! Thank you very much!
The largest effect is that my child is more enthusiastic about school! Every parent wants their children to be happy at school, Study Smart made it happen.
In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past
With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.
Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.
Explain the types limitations/ restrictions of FI + examples
- Business forms >
- have/include local participation
- Obliged to disclose activities to the public
- Limited % of foreign equity >
- May own up to a certain % of equity
- Economic sectors (sectoral limitations) >
- Sectors exclusive for the state/nationals —> public utilities, vital for national security
- Limited % of participation in certain sectors —> to limit the influence of Foreign investors in domestic politics, social economic affairs
- Sectors with full/majority foreign ownership —> local development resources are limited. Where FI will increase jobs(local) + where Foreign export trade increases
Explain priority sectors for FI + examples
- Capital intensive
- Support tech transfer
- Export oriented
They use incentives to boost the FI in these industries example of incentives are:
- Tax holidays/ tax incentives (so lower taxes)
- Easier application + approval procedures
Explain how Geographical limitations are categorised
- Free trade area's: 2 or more states trade across and within border free from customs tariffs and other restricted area's
- Free City: An entire city open to trade (international)
- Free trade zone & sub-zones: (FTZ) like free city but smaller and within or near a port city. The sub zones are associated but physically different from free trade zones. They accommodate limited purpose trading activities —> single manufacturing plants
Explain what the gov. security transactions regulations
- Defining the form that securities take,
- Protection of buyers and sellers,
- Clearance and settlement procedures,
- Insider trading
- Takeovers.
Explain the intentions and actions of a hostile takeover/ foreign raiders
Actions: Buy heavily the stock of target company
Explain protection agains (hostile) takeovers (actions by companies)
- restrictions on share transferability,
- cross-ownership of shares
- restrictions on the voting rights of publicly held shares.
Explain insider trader regulations
Further explanation:
- they trade public info > info assessable to public
- or material non-public info > info that is not public info and which could contain sensitive issues that could affect stock prices
Legal to posses but illegal to sell as that would be insider trading
Explain ENFORCEMENT OF SECURITY REGULATIONS INTERNATIONALLY
- 1989 Convention on Insider Trading
- assist the regulatory agencies of its signatory states
- establish a mechanism for the exchange of informationso that those agencies can better supervise their securities markets.
FOCUS on:
- uncovering the insider trading activities
- does not attempt to establish uniform enforcement provisions or sanctions.State is allowed to ask assistance from other member states.
Explain what an insider trader is
Try our study magic for free
a PDF, study it super fast
- No sign up, email or credit card needed!
- AI makes unlimited flashcards
- Get unlimited quizzes and tests
- Ask AI anything
- No sign up, email or credit card needed!
- Have and keep perfect overview
- Make flashcards, notes and mind maps
- Review, test and score!
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
