Marketing Strategies

“How Have Global Economic/Financial Crises Affected FDI?”

Table of Contents
Table of Contents …..…………………………………………………………………………...2

Abstract……………………………………………………………………………………………3
1. Introduction………………………………………………………………………………3
1.1 Preamble
1.2 Research Importance
1.3 Aim of Work
1.4 Thesis Statement

2. Theoretical Background…………………………………………………………………4
2.1 What is meant by an Economic and Financial Crises……………………………..4
2.1.1 Defining an Economic/Financial Crisis…………………………………………...4
2.1.2 Causes of Economic Crisis………………………………………………………..4
2.2 Cases of Economic/Financial Crisis………………………………………………...6
2.2.1 The Great Depression (1929-1940)……………………………………………….6
2.2.2 The Global Recession (The Late 2000s Financial Crisis)………………………...7
2.3 FDI in Economic/Financial Crisis…………………………………………………10
2.3.1 What is an FDI?...................................................................................................10
2.3.1.1 Why do Companies seek FDI Opportunities?.........................................12
2.3.2 How FDI is affected by Economic/Financial Crisis?..........................................19
2.4 Recovering from an Economic/Financial Crisis……………………………...…..24
2.4.1 Why Different Countries have been Differently Affected by the Crises?……….24
2.4.2 How Countries Deal with Economic and Financial Crises to Recover………….25
2.4.2 The Role of FDIs in the Recovery Process………………………………………27

3. Conclusion………………………………………………………………………………28
References……………………………………………………………………………………….29
Declaration………………………………………………………………………...35
Abstract
1. Introduction Economies around the world have witness a noticeable growth and development since Foreign Direct Investments (FDI) entered the scene, like in East Asia in the mid 1980s, due to the rapid competition, creativity in market aspects, innovation and increased employment that made such markets just perfect to invest in (Ucal et al., 2010). According to the International Monetary Fund, Foreign Direct

References: 2.2 Cases of Economic/Financial Crises 2.2.1 The Great Depression (1929-1940) The most severe financial crisis in the modern history ever happened, known as “The Great Depression”, hit the world in the preceding events of WWII, in most countries it started at 1929 which is about a decade before the war started (Duhigg, 2008). 2.2.2 The Global Recession (The Late 2000s Financial Crisis) According to (Reuters, 2009), “The Global Recession” in the late 2000s is considered the most severe financial crisis ever since “The Great Depression” Figure 2 (World’s FDI Inwards 2005-2010) Figure 3 (USA, UK and European Union 's FDI Inward-Flows 2005-2010)