1. What are the four forms of FDI and why make a distinction between the forms?
FDI in Extractive sector, FDI in Manufacturing, FDI in infrastructure, FDI in services
They are large in absolute terms and relative to each other
2. What is the Dutch Disease?
The negative effect of FDI on the host country
3. Is there a clear single path that leads to efficient, corruption-free administration of natural resource revenue industries?
NO- The literature reveals no single path or magic ingredient that leads to comparative efficient, corruption-free administration of natural resources.
4. What are the consequences of FDI in extraction industries contingent upon?
Government policy framework and Broader institutional setting
5. What is the Foreign Corrupt Practices Act of 1977 (FCPA) and are bribes tax deductible?
The act of paying bribes abroad
6. Why do “deferred gifts” create problems?
7. What is the EITI?
8. Do you think more stringent reporting requirements will put US MNCs at a competitive disadvantage?
9. Why does FDI in extraction traditionally have great official support from home-country governments?
10. Why does the structure of how extraction industry taxes are calculated (i.e., royalty v. income tax) matter?
11. What are transfer taxes? How are they used to avoid taxes?
12. What is the relationship of transportation costs to trade?
13. What industries rank the highest in bribery?
14. What is the one distinct feature that complicates infrastructure FDI?
15. What is the distinction between political and commercial risk?
16. What is force majeure?
17. What is the moral hazard evident in current political risk insurance?
18. What does the “internalization of intangible assets” mean?
19. What is the difference between “market-seeking” (horizontal) FDI and “efficiency-seeking” (vertical) FDI?
20. What is an import substitution strategy?
21. What is the does the research show about the extent of competition protection surrounding foreign-owned manufacturing operations and the impact of FDI?
22. What is “tariff jumping?”
23. Do you think requiring a local joint venture partner for FDI is a wise government policy?
24. What is the sole performance requirement that showed signs of a positive impact for manufacturing FDI?
25. What does research show about requiring foreign investors to meet specific domestic content requirements and share technology?
26. What is meant by FDI tending to “crowd in” rather than “crowd out” other FDI?
27. Does growing FDI help generate exports from other firms in the host economy?
28. How does the spread of FDI affect the treatment of workers in indigenously owned plants?
29. Are FDI wage premiums more pronounced in richer developing countries than poorer developing countries?
30. What accounts for the foreign-investor wage premium?
31. What are TRIMS?
32. What are “pillar industry” policies?
33. What are Schumpeterian cycles of “creative destruction” and what does it have to do with FDI?
34. What happened to Mexican retailers when Wal-Mart entered Mexico?
35. When FDI brings its own suppliers should this be considered an “enclave economy” or “cluster building?”
36. What is the “Washington Consensus?”
37. What is the prisoner’s dilemma?
38. Does what a country export matter?
39. Why are “screwdriver” operations not good for economic development as other approaches?
40. What is the problem with the import substitution strategy of FDI compared to an export base FDI strategy?
41. What is the “parental supervision” paradigm of FDI?
42. Paul Romer…