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M3D1 International Trade and Political Influences

Political Influences

Q When preparing for your discussion post on this case, it is recommended that you read through it several times. • Read through it the first time to familiarize yourself with the prompt. • On the second reading, consider your assigned role in the situation, and let that guide your perspective. Look deeper at the details: facts, problems, organizational goals, objectives, policies, strategies. • Next, consider the concepts, theories, tools and research you need to use to address the issues presented. • Then, complete any research, analysis, calculations, or graphing to support your decisions and make recommendations. Should the world move to a standard methodology for measuring and reporting Foreign Direct Investment (FDI)? Kerner (2014) hypothesized that, “If the relationship between democracy and FDI is driven by political risk, we should expect it to be more evident in measure of fixed capital expenditures by majority-owned affiliates than in the flow and stock data that are more commonly used to test this proposition” (p. 813). Did Kerner’s (2014) study answer our question about whether to develop a standard methodology for measuring and reporting FDI? After completing the module’s reading, respond to the questions concerning Kerner’s (2014) article: What we talk about when we talk about foreign direct investment. (Links to an external site.) A. Complete the following: 1. What is the author’s major concern about measuring FDI? 2. Provide three examples of policy instruments that governments can use to influence FDI. 3. Does his analysis provide sufficient evidence to answer the question of whether the world should adopt a standard methodology for measuring and reporting FDI? Include an analysis of the benefits and costs (the downside) of FDI. Provide specific supporting evidence of why or why not. B. When responding to at least two classmates, provide substantive feedback on why the evidence your peer provided in question “c” was not sufficient for world leaders to decide on whether to support the worldwide measurement and report standards for FDI. You must support your response to your peer with well-researched information (i.e. – not just opinion). Ensure you support your responses with scholarly reference material using APA formatting. REFERENCES Kerner, A. (2014). What We Talk About When We Talk About Foreign Direct Investment. International Studies Quarterly, 58(4), 804–815.

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The major concern of Kerner (2014) about measuring FDI is the way in which jobs/work of existing organizational members belonging to host countries can be taken away by employers. Therefore, the measurement of FDI can be ineffective/incomplete without taking into consideration about the number of individuals losing their jobs because of FDI. Though job-creation will take place because of FDI, there will not be many chances given for the long-term sustenance of some existing organizational members.