term paper 3
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Term paper 3. Trade and investment. Valuation. M are valued usually at CIF ( Cost Insurance Freight) X are recorded FOB (Free on Board) => M value higher than X value by the value of freight and insurance . Trade classifications. SITC = Standard International Trade Classification - PowerPoint PPT PresentationTRANSCRIPT
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Term paper 3
Trade and investment
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Valuation
M are valued usually at CIF (Cost Insurance Freight)
X are recorded FOB (Free on Board)
=> M value higher than X value by the value of freight and insurance.
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Trade classifications
SITC = Standard International Trade Classification
HS = Harmonized System
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FDI definitions
• IMF BoP Manual (5th ed 1993) and OECD Benchmark Definition of FDI (3rd ed) 1996:
“the category of international investment that reflects the objective of obtaining a lasting interest by a resident entity in one economy in an enterprise resident in another economy...”
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Components of FDI Flows and Stocks
* Equity capital
* Reinvested earnings: in addition to equity capital
* Intercompany loans: loans extended by the paternal company to the affiliate
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Measurement
Approval vs. disbursements data – two sides of the FDI coin
Gross and net measures
Directional principle
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Assignment 27 September 2010: Trade and investment
Provide an overview and brief analysis of developments in
international trade and investment flows over the last decade in
[country: XXX
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Trade:
Limitation: Merchandise trade (excluding trade in services)
Main indicators:
* Total XM values (trade balance)* Composition of trade
* Major regional groups/countries: source (M)/destination (X)
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FDI:Limitation: Inward foreign direct investment (FDI) excluding outward FDI and foreign portfolio investments (FPI)/foreign indirect investment
(FII). Main indicators:Total size (approved/disbursed/BoP-concept)Sectors (broad sectors, ISIC)Source countriesSectors/source countries