So, 238 proposals later, we’re no closer to knowing who will win the race to win Amazon’s (infamous) second US headquarters. While some communities decided to pass on the opportunity to put in a bid (see an interesting example of this from Little Rock, AR), Amazon posed a challenge to attract 50,000 jobs. For some, this has become a bidding war in terms of incentives, but should also be a competition on long term location factors, like skills, infrastructure, and university programs.
When Amazon eventually make their choice (and let’s ass...
This month’s release of the annual UNCTAD Investment Report suggests that reductions in global FDI level, seen after the 2008 economic downturn, are structural. The peak in investment at that time shows little sign of returning, given a 2% decrease in total investment in 2016 by capital expenditure, compared to the previous year. While UNCTAD expect a modest increase again in the coming year, it is interesting to note the theme for this year’s report is digital development.
For the past few years, in terms of global FDI proje...
The White House America First policy suggests that job creation is something that should be stimulated through a primarily domestic approach. This, coupled with rhetoric around the likes of NAFTA would seem to underpin that idea. You might think that in this case, US Economic Development Organizations (EDOs) would shift their own strategies (which already often strongly resourced towards domestic attraction), further in this direction and away from Foreign Direct Investment (FDI).
Few would have predicted the pace and scale of political change on both sides of the Atlantic over the last 12 months. This has left firms in both the U.S. and UK facing difficult decisions for their foreign direct investment (FDI) plans going forward. But despite all that has already happened, there is still little certainty going forward. So what can we say about American firms considering UK expansion, and their British counterparts looking to U.S. opportunities?
It’s difficult to write a blog about trade and investment at the moment without inevitably turning to the same two subjects: Brexit and Trump. Having already written about both of these twice since June, it seems right that we try to adjust the focus this month. To that end, it’s worthwhile to discuss two exemplar countries which have had seen little discussion in the context of these topics, but have a great deal at stake themselves.
Within Latin America, Mexico has been the main target of the new US administration, in the cont...
So we come to the end of a year where at least in a FDI sense, there is profound global uncertainty. Accompanying this blog, you can read about six events / topics of the year HERE that will shape FDI trends for 2017 and beyond. Every reader is likely to guess at least some of these choices, but for completeness they are:
Trump & FDI
Brexit & FDI
Cuba & FDI
South America & FDI
The Middle East & FDI
Changing FDI Trends
Of course this is not an exhaustive list, and other events that are important could have be...
Back in June, I wrote an article that sought to discuss why Brexit could have a positive impact on UK and global trade and foreign direct investment (FDI) flows. While not personally being convinced, the exercise at least showed there are credible arguments on both sides. It’s now appropriate to repeat this for the US election.
The rhetoric of the election went far beyond that of Brexit, but if we try to move beyond this, what might be the future for trade and investment? During the campaign, it was trade more than investment in the spotl...
This has been a year when sentiment about the effects of globalization and trade has come to the fore, with headlines in the US and the UK capturing a feeling that the current system benefits the wealthiest, while a large chunk of the population are left behind. Whatever your views on this argument, there is an irony that by those countries becoming more inward facing, it is the less developed nations, whose population are less economically secure, that may be most affected.
The US Case
An obvious example is Mexico. Should NAFTA be sc...
A typical approach in investment attraction for Economic Development Organizations (EDOs) is to attend trade shows, both at home and overseas. However, in a recent conversation with a lead generation professional, I was challenged as to the real success that such events have in producing project opportunities. Given they are an expensive and time intensive marketing solution, it is worthwhile to consider a few key aspects when deciding what, if any, events an EDO should attend:
Define your objectives: identifying the right show means...
With the Olympics over and the Paralympics set to begin shortly, it seems the right time to discuss the effects that such a mega-event can have on foreign direct investment (FDI). At London 2012, UK Trade and Investment reported that the Olympics resulted in GBP2.5bn of "additional inward investment". Importantly, 58% of this was said to be outside London. This totalled 14% more investment than the previous year nationally, and the highest job creation (more than 66,000) in over a decade.