Assignment 3. Read the following sentences and phrases taken from the text. Complete the text with the sentences

§ Mergers and acquisitions are a significant form of foreign direct investment;

§ Traditionally, economic theory says that a country’s total investment must equal its total savings;

§ The more of its GDP a country invests, the faster its economy should grow;

§ The circumstances and manner in which money is invested count at least as much as the total sums invested;

§ buying a company there or establishing new operations of an existing business;

§ unlike financial investors, multinationals generally invest directly in plant and equipment;

§ Some investments, especially in services industries, are essential prerequisites for selling to foreigners.

1. Investmentisputting money to work, in the hope of making even more money. Investment takes two main forms: direct spending on buildings, machinery and so forth, and indirect spending on financial securities, such as bonds and shares. _______. But this has never been true in the short run and, as a result of globalisation, may never be even in the long run, as countries with low savings can attract investment from overseas and foreign savers lacking opportunities at home can invest abroad.

2. _______. This is why governments try so hard to increase total investment, for instance, using tax breaks and subsidies, or direct public spending on infrastructure. However, recent evidence suggests that the best way to encourage private-sector investment is to pursue stable macroeconomic policies, with low inflation, low interest rates and low rates of taxation.

3. Curiously, economic studies have not found evidence that higher levels of investment lead to higher rates of GDP growth. One explanation for this is that _______. It isn’t how much you do, it’s the way that you do it.

4. Investment from abroad is called inward investment, whereas its opposite is referred to as outward investment. Investing directly in production in another country, either by _______ is called foreign direct investment. This is done mostly by companies as opposed to financial institutions, which prefer indirect investment abroad such as buying small parcels of a country's supply of shares or bonds. Foreign direct investment (FDI) grew rapidly during the 1990s before slowing a bit, along with the global economy, in the early years of the 21st century. Most of this investment went from one oecd[1] country to another, but the share going to developing countries, especially in Asia, increased steadily.

5. There was a time when economists considered FDI as a substitute for trade. Building factories in foreign countries was one way of jumping tariff barriers. Now economists typically regard FDI and trade as complementary. For example, a firm can use a factory in one country to supply neighbouring markets. _______. Who would buy a Big Mac in London if it had to be sent from New York?

6. Governments used to be highly suspicious of FDI, often regarding it as corporate imperialism. Nowadays they are more likely to court it. They hope that investors will create jobs, and bring expertise and technology that will be passed on to local firms and workers, helping to sharpen up their whole economy. Furthermore, _______. Since it is hard to uproot a chemicals factory, these investments, once made, are far more enduring than the flows of hot money that whisk in and out of emerging markets.

7. _______. For instance, in 1997, more than 90% of FDI into the United States took the form of mergers rather than of setting up new subsidiaries and opening factories.

(After economist.com)

Assignment 4. Listen to an interview with Bradley Hopper, founder and CEO of a US casual clothing manufacturer, and answer the questions.

1. Why did Hopper go into textiles?

2. What was his main goal?

3. What does he say about the competition?

4. What does he say about environmentally friendly products?

5. What are his future plans?

Date: 2015-09-23; view: 625; Нарушение авторских прав