Thursday, August 18, 2011

World investment report 2011-UNCTAD

19th aug hindu edits
·         Focus area: international production and commerce
·         Cross border non equity modes include contract famring, manufacturign , outsourcing etc
·         It is a mechanism that allows MNCs to coordinate activities in their global value chains without acquiring equity stakes in NEM firms
·         NEMs generated 2 tr $ in 2010
·         They have acquired significant presence especially India eveloping countries depsite the FDIcaps
·         NEMs facilitate MNCs tot ap into productive capacities of the region
o   Example: the software and IT industry of India
·         Now NEMs firms are transforming into MNCs in the process of servicing their clients  present world wide
·         They contribute to as high as 15% of GDP in some countries
·         Create enormous job opportunities
·         Boost entrepnuerial skills and exports

·         Poor working conditions especially in developing countries
·         Sacrifice safety and environment norms for short term profits
·         Developing coutnries need to be wary fo risk in promoting low value activities
·         They must focus on maximising benefits form integrating domestic firms into global value chains

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