Investment, enterprise and technology

Investment and enterprise competitiveness

Investment, technology and enterprise development

Enterprise, investment and competition policy

34. Investment, enterprise development and technology.

(g) Investment mechanisms and joint ventures

As for an overseas investment, an enterprise shall conclude a contract thereon in written form so as to clarify the rights and interests it may enjoy from this investment and to carry out financial supervision.

As the preferred destination for Chinese enterprises to enter Germany, Nordrhein Westfalen has attracted more than 800 Chinese enterprises to invest there, and the local government expected Chongqing entrepreneurs to go to this popular region for investment to feel the local investment environment.

Declaration on International Investment Binding non

2 Long term Equity Investments

An emphasis on investment shifts the focus of development strategy to the entrepreneurial class and its interaction with the state, including whether and how public investment crowds in private investment.

Software SMEs contributed significantly to OFDI stock (47 per cent), whereas manufacturing OFDI by SMEs was small (table 6).

OFDI and enterprise competitiveness

Investments by economic enterprises, in particular, rose by 38 per cent. Bulgaria 1995 , p. 77.

SMEs investing abroad can normally be found among the more growth oriented SMEs.

Indian OFDI by SMEs is similar to that by Indian TNCs in that it originated from a broad spectrum of manufacturing industries.

Outward foreign direct investment by Indian small and medium sized enterprises

(1) if he she gains the stock equity of the enterprise, he she shall take part in the profit distribution in common with other investors and

For instance, OFDI approvals by SMEs accounted for 26 per cent cases of manufacturing activities and 41 per cent cases in the software industry.

It supports the development of the microenterprise and small scale business sector by providing working capital and capital investment loan products.

Not just large Chinese enterprises but SMEs too are investing abroad.

Since the majority of SMEs investing abroad are looking for local SMEs to partner with, it is important that host countries encourage the development of their SME sectors so that local enterprises have the capability to form alliances or joint ventures with the investing SMEs from abroad (Cho 2003 UNCTAD 1998).

OFDI and enterprise competitiveness 11

OFDI by SMEs Emerging patterns 7

Case study on outward foreign direct investment by Singaporean firms

Enterprise competitiveness and development

Investments under the automatic route have been allowed in unrelated business from the investing firm and in new sectors such as agricultural activities.

Without the consent of the investors of the custodian enterprise, the custody enterprise may not reorganize or restructure the custodian enterprise, transfer the custodian enterprise, assign the custodian assets or business, or provide guarantee to the outsiders in the name of the custodian enterprise or with the entrusted assets.

An expert stated that Republic of Korea SMEs account for a significant percentage of OFDI by Korean firms. Most of their investments are in neighbouring countries.

OFDI by SMEs Emerging patterns

III. ISSUES RELATED TO TECHNOLOGY, INVESTMENT AND ENTERPRISE DEVELOPMENT(MIDRAND, 1996)

Much of African OFDI takes place in neighbouring countries. South African firms have used their relatively lower cost of capital to invest in other African countries where capital markets were not developed.

Data related to the impact of OFDI on firms' competitiveness are particularly lacking, especially for the SME sector.

OFDI by Argentine SMEs in the autoparts, agricultural machinery and software sector is prominent.

The motives for OFDI by firms from developing countries do not differ from those of developed country firms, although developing country firms have a greater tendency to invest in neighbouring countries and in other developing countries.

Because of these disadvantages, SMEs are invariably small in quantity as compared with OFDI by larger enterprises.

Licensing requirements for foreign investment have also been reduced, making investment easier for enterprises.

Foreign enterprises are increasingly investing in emerging markets.

(b) Subprogramme 2. Investment, enterprise and technology 400,900

OFDI policy regime and SMEs

Indian SMEs are not far behind the larger enterprises in OFDI activities.

Since the majority of OFDI by SMEs is in the form of joint ventures, it is important that host countries encourage the development of their SME sector so that local enterprises have the capability to form strategic alliances or joint ventures with investing SMEs from abroad (Cho 2003, UNCTAD 1998).

To describe the nature and trends of OFDI by indigenous Singaporean enterprises

Evidence shows that, compared to FDI from large enterprises, FDI from SMEs is more likely to lead to multiplier effects through linkages to local industry (UNCTAD 1998).

With regard to the former, crime drives away business and investment and increases the costs for businesses, both local and international, that conduct commercial activities in Africa.