Capital employed and Foreign direct investment: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Create page. Sources: The Treasurer, June 2018 p07 and OECD webpage https://www.oecd.org/daf/inv/investmentstatisticsandanalysis/40193734.pdf)
 
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An accounting measure of the total value of resources available to management for use in the business.
(FDI).


The Organisation for Economic Co-operation and Development (OECD) defines foreign direct investment as:


In simple terms, it is defined as:
"a category of cross-border investment made by a resident in one economy (the direct investor) with the objective of establishing a lasting interest in an enterprise (the direct investment enterprise) that is resident in an economy other than that of the direct investor."


Equity + Debt


''or''  
<span style="color:#4B0082">'''''US protectionism - how far will Trump go?'''''</span>


Equity + Non-current liabilities
:"The US enjoys the highest foreign direct investment in the world because, thanks to its strong economy, it has a risk/return profile that attracts foreign investors.


:US households benefit from this through higher consumption by way of trade. The US does not lose out in terms of jobs or economic growth by running a trade deficit."


The detailed definition can vary in different contexts.
:''The Treasurer magazine, June 2018, p13 - Kallum Pickering, senior UK economist at Berenberg Bank.''
 
For this reason it is important to be clear about it, and to state it expressly.
 




== See also ==
== See also ==
* [[Capital market]]
* [[Organisation for Economic Co-operation and Development]]
* [[Capital structure]]
* [[World Bank]]
* [[Debt]]
* [[Equity]]
* [[Non-current liabilities]]
* [[Return on capital employed]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Intercompany_funding]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Financial_products_and_markets]]

Revision as of 14:50, 1 June 2018

(FDI).

The Organisation for Economic Co-operation and Development (OECD) defines foreign direct investment as:

"a category of cross-border investment made by a resident in one economy (the direct investor) with the objective of establishing a lasting interest in an enterprise (the direct investment enterprise) that is resident in an economy other than that of the direct investor."


US protectionism - how far will Trump go?

"The US enjoys the highest foreign direct investment in the world because, thanks to its strong economy, it has a risk/return profile that attracts foreign investors.
US households benefit from this through higher consumption by way of trade. The US does not lose out in terms of jobs or economic growth by running a trade deficit."
The Treasurer magazine, June 2018, p13 - Kallum Pickering, senior UK economist at Berenberg Bank.


See also