Multinational corporations investment

The Chinese chemical market is attracting huge foreign direct investments. Between 1993 and 2003, investment projects amounted to around EUR 20 billion of contractual FDI, with Bayer, BASF, Shell, and BP the four biggest investors. Over the last ten years, five percent of foreign direct investment was into the chemicals sector. Multinational corporations (MNCs) tend to enter via joint ventures partially driven by the need for feedstock access, but wholly foreign-owned enterprises will become more common following China s membership of the WTO. 

If the major obstacle is not the return for a financial investment, but rather the size of the investment itself, the problem then seems to be one of finding the investment. Perhaps the only groups that can support the needed long-term research are national governments, international bodies, or multinational corporations in cooperation with these bodies (13, 67, 68). 

That general market rule does apply to a limited extent to pharmaceuticals, namely to generic products, where a particular medicine is available from various competing sources. Here, price determination responds to competitive pressure in the way the economic theory predicts. However, barriers to entry are common in the rest of the pharmaceutical market. Essentially these are economic barriers, in the form of the large initial investments which are required to develop a drug and maintain the activities of a multinational corporation. 

Bhntta KS, HuqF, Frazier G, Mohamed Z (2003) An integrated location, production, distribution and investment model for a multinational corporation. Int J Prod Econ 86 201-216 Bowersox DJ, Gloss DJ, Cooper MB (2002) Supply chain logistics management. McGraw-Hill, Boston... 

Jensen R.E., (1987a) International Investment Risk Analysis Extensions for Multinational Corporation Capital Budgeting Models , Mathematical Modelling, Vol. 9, No. 3, pp. 265-284. 

In South Africa, multinationals including BMW, VW, Barlo-world. Avis, and Dewey LeBoeuf have invested in the LoveLife Trust (http //www.lovelife.org.za/corporate/), an organization that raises awareness about HIV/AIDS management and prevention. This is a relevant issue in South Africa, where 11 percent of the working population is HIV positive. In Nigeria, multinational... 

Many individual investors are aware that the biggest multinational companies issue bonds,- yet, despite many of the companies blue-chip reputations, individuals, by and large, avoid investing in them. This is primarily because corporate bonds— issued from companies of any size or reputation—are still taxable and smart investors know that they can get a safer, tax-free alternative elsewhere. 

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