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International Policies and Regulations

Research international policies, regulation, and supervision of foreign investment. Select one topic from your research, and summarize your findings in 3-4 paragraphs.

Write an additional paragraph addressing the following question: Has business globalization and the inception of e-commerce impacted the importance of such policies?

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Please see response attached (also attached below), as well as two relevant documents that you might find helpful. I hope this helps. Good luck with your continued studies and take care.

SOLUTION:

Research international policies, regulation, and supervision of foreign investment. Select one topic from your research, and summarize your findings in 3-4 paragraphs.
International Policies

The main components of policy are:

a. Adoption of a market oriented system for the allocation of resources.
b. Encouragement of private investment and entrepreneurial activity.
c. Opening of the economy for foreign trade and investment.

Truly, the United States has traditionally welcomed the Foreign Direct Investment (FDI) policy and provided foreign investors fair, equitable and nondiscriminatory treatment with few limited exceptions designed to protect national security. The Exon-Florio provision, for example, is implemented within the context of this open investment policy. The intent of Exon-Florio is not to discourage FDI generally, but to provide a mechanism to review and, if the President finds necessary, to restrict FDI that threatens the national security. The Exon-Florio provision is implemented by the Committee on Foreign Investment in the United States ("CFIUS"), an inter-agency committee chaired by the Secretary of Treasury. CFIUS seeks to serve U.S. investment policy through thorough reviews that protect national security while maintaining the credibility of our open investment policy and preserving the confidence of foreign investors here and of U.S. investors abroad that they will not be subject to retaliatory discrimination (see http://www.treas.gov/offices/international-affairs/exon-florio/ for more detail).

In fact, promotional efforts to attract foreign direct investment (FDI) policy have become the focal point of competition among developed and developing countries. This competition is maintained even when countries are pursuing economic integration at another level. And it often extends to the sub-national level, with different regional authorities pursuing their own strategies and assembling their own basket of incentives to attract new investments. While some see countries lowering standards to attract FDI in a "race to the bottom," others praise FDI for raising standards and welfare in recipient countries. Several trends are reinforcing traditional impulses for foreign direct investment, such as access to natural resources, markets, and low-cost labor. With the rise of globalization, technological progress ...

Solution Summary

Based on research of international policies, regulation, and supervision of foreign investment, this solution summarizes one specific topic in a related area. It also addresses the question: Has business globalization and the inception of e-commerce impacted the importance of such policies? Supplemented with two compelling articles.

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