In spite of growing competition, Russia stands a good chance of attracting significant technologies and know-how through FDI, but it must move rapidly to reform FDI mechanisms. Valuable investments may otherwise be lost during these crucial years when TNCs are taking decisions on foreign investments. Opportunities lost to competing economies will impact negatively on Russia's economic stability during its critical transition phase.
Russia must take its main challengers seriously. Practically all LEM governments strive to attract FDI from all important source regions. Knowing that most companies can commit human and financial resources to only one country at a time,
51 governments strive to improve their 'pitch' with customized incentive packages. In addition, Russia can build a highly competitive position by also upgrading its human resources.
For information on other recipient countries, see Chapter 3.2.
For types of FDI, see Appendix: Definitions and Explanatory Notes.
The combined population of the six LEMs is almost 3 billion.
If current growth rates persist, the combined GDP of the six LEMs will attain the level of US$8500–9000 billion at the turn of the century.
On the basis of GDP measured in PPP.
By 1998–99, the combined global export share of the six LEMs will roughly correspond to that of the United States (around 11 per cent).
See also Parts III and IV.
However, it is a member of the Asia-Pacific Economic Council (APEC), a loose grouping uniting practically all the countries bordering the Pacific.
Chapters 12.3 and 13.2.
India is the leading LEM for software development.
Maquiladora industries were originally set up in border regions with the United States to offer foreign investors special tax allowances and other incentives. See also Chapter 7.5.4.
Including vendor agreements with large TNCs, who are already their clients in home markets.
China can be considered to have attained phase 3 of the IDP, which is characterized by high inward FDI in a number of sectors coupled with still small but growing volumes of capital exports.
In terms of labour, taxes and raw materials.
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Foreign Direct Investment in Russia: A Strategy for Industrial Recovery.
Contributors: Paul Fischer - Author.
Publisher: St. Martin's Press.
Place of publication: New York.
Publication year: 2000.
Page number: 375.
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