Faculty of management inb 001

FDI outflows can improve long-run competitiveness if partnering abroad provides a learning opportunity. And FDI outflows can help export jobs in industries that use obsolete technology or employ low-wage, low-skilled workers at home. financial incentives.
7. However, part of China’s success in attracting FDI may be exaggerated because of misreporting and round-tripping. The latter refers to capital originating in China that is sent to other economies and then returns disguised as FDI to take advantage of tax, tariff, and other benefits accorded to foreign but not domestic investment. The extent of this round-tripping is difficult to assess; estimates range from 7 percent of inflows in 1996 to almost 25 percent in 1992.¹ Some FDI is actually better characterized as foreign borrowing, because the inflows in question (mainly for infrastructure) were guaranteed a specified rate of return. Misreporting may also be a problem, because local officials have an incentive to exaggerate their ability to attract FDI, and foreign investors have an incentive to overstate their actual investment in order to report lower taxable income.
Hong Kong SAR and Taiwan Province of China have traditionally been important sources of FDI in China (Table 5.2). Their importance diminished somewhat in the 1990s as multinationals from Europe, Japan, and the United States entered China, but these two economies still account for almost half of FDI inflows.
The role of the ‘territorial dimension’ in growth and in policy making is currently high on the EU political agenda. Territorial capital distinguishes a region from other areas/territories and is determined by many factors including geographical location, size, quality of life or the agglomeration economies provided by its cities. laSun et al. (2002) identify several components that make up an enabling environment for FDI. First, FDI requires a stable political and macroeconomic environment. Second, and closely related, is the importance of a sound policy and regulatory framework and efficient institutions to support its enforcement and uphold the relevant laws and regulations. Creating and maintaining a regulatory and administrative climate conducive to investment can have a huge impact on an investor’s location choices as well as predicting the extent to which FDI inflow will benefit the host country. Third, a good policy and regulatory framework should be complemented by adequate physical and social infrastructure. These include the quantity and quality of roads and communication systems, skilled labour and efficient public services. They are also important in realising the full potential of benefits associated with the presence of FDI. A detailed description of FDI drivers can be found in the scientific report on FDI drivers.
Overseas visits by Federal Government Ministers help advance Australia's diplomatic and economic interests and promote the international competitiveness of Australian businesses. Austrade manages and coordinates ministerial led business missions including by the Minister for Trade and Investment and the Prime Minister.

Information for the travel industry

The ACCC and state and territory Australian Consumer Law regulators have developed this best practice guidance for the travel industry in relation to dealing with COVID-19 related cancellations. The guidance relates primarily to circumstances where travel services have been cancelled as a result of the COVID-19 pandemic (rather than, for example, where a travel service will still proceed but a consumer has decided to cancel their booking).