Foreign direct investment on a global scale

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Look at the massive increase in foreign direct investment during the last two decades. Despite two large dips during financial crises, foreign investment is here to stay.

Transcript of Foreign direct investment on a global scale

Page 1: Foreign direct investment on a global scale

Foreign Direct Investment on a Global Scale

The chart shows the volume of Foreign Direct Investment relative to GDP for the entire world economy from 1970 to 2011. The globalization of international investment clearly took off during the 1990’s, coincidental with the economic transformation of the communist countries and the opening of China. The technological boom in the U.S. was also a significant draw for investors. The peak was reached during the dot com boom around year 2000 and was repeated in the run-up to the current crisis. Interestingly, global investment did not decline to very low levels and started a rebound almost immediately.

Learn more about Foreign Direct Investment at www.theglobaleconomy.com.

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