{"id":2074,"date":"2018-01-29T16:04:38","date_gmt":"2018-01-29T15:04:38","guid":{"rendered":"https:\/\/www.textmaster.com\/blog\/choosefrance-what-are-countries-doing-to-attract-foreign-investment\/"},"modified":"2018-08-09T11:46:05","modified_gmt":"2018-08-09T09:46:05","slug":"choose-france-attract-foreign-investment","status":"publish","type":"post","link":"https:\/\/www.textmaster.com\/blog\/choose-france-attract-foreign-investment\/","title":{"rendered":"#ChooseFrance: what are countries doing to attract foreign investment?"},"content":{"rendered":"

Ahead of the Davos Forum, a few days ago in Versailles, the \u201cChoose France Summit<\/strong>\u201d took place. This was an opportunity for French president Emmanuel Macron to meet the heads of various multinationals and promote “Made in France”.<\/span><\/p>\n

A well-proven and marketed operation; #ChooseFrance<\/strong> quickly became very popular on Twitter during the day of the summit and more than 3.5 billion euros of investments were announced by companies such as Toyota, Facebook, SAP, Manpower, Google and others<\/span>.<\/p>\n

But of course, France is not the only country to promote itself in this way: this article presents a synopsis of initiatives from around the world to attract foreign direct investment <\/strong>(FDI).<\/span><\/p>\n

What is Foreign Direct Investment?<\/b><\/h2>\n

FDI is, put simply, cross-border capital movements<\/strong>. It can take the form of the acquisition of a foreign company, the creation of a subsidiary or capital injection to increase the production capacity of a subsidiary, or to provide support in the event of financial difficulties. <\/span><\/p>\n

Reducing costs, tax optimisation and breaking into new markets for investing countries, versus growth and job creation opportunities for the country receiving the investment: these are the principle motivations at the heart of FDI. These investments are a strong indicator of the economic attractiveness<\/strong> of a country and the 1980s saw an explosion in these investments.<\/span><\/p>\n

What are the policies and context needed to attract foreign investments?<\/b><\/h2>\n

Of course, campaigns to “promote” a country must be based around an economic, structural and political context that is attractive to the foreign company. Labour costs, infrastructure quality, company taxes, innovation, economic growth… all these are factors that are used by governments to attract foreign investment<\/strong>. <\/span><\/p>\n

In 2016, the top 10 countries receiving FDI<\/strong> were the following, according to the UNCTAD (the United Nations Conference on Trade and Development):<\/span><\/p>\n

    \n
  1. USA<\/span><\/li>\n
  2. UK<\/span><\/li>\n
  3. China<\/span><\/li>\n
  4. Hong Kong<\/span><\/li>\n
  5. Singapore<\/span><\/li>\n
  6. Brazil<\/span><\/li>\n
  7. France<\/span><\/li>\n
  8. Netherlands<\/span><\/li>\n
  9. Australia<\/span><\/li>\n
  10. India<\/span><\/li>\n<\/ol>\n

    Among these countries, certain of them (such as China or India, for example), hold great attractiveness, such as the cost of labour that draws many multinationals, encouraging them to delocalise their production sites, for example. But for countries with higher GDP, such as the USA, western European countries and Australia, it can be harder to attract foreign investment<\/strong>. <\/span><\/p>\n

    \"All<\/a><\/span>