Showing papers on "Foreign portfolio investment published in 1972"

Returns on Alternative Investment Media and Implications for Portfolio Construction

Abstract: Most of the prior work in the area of portfolio construction has focused exclusively on common stocks and the "riskless rate of return." Studies of rates of return on other investment media, such as bonds, real estate and commodities, generally have not included an investigation of covariances with other media. This paper computes ex post rates of return and correlation coefficients for twelve alternative investment media' for the period 1949-69 inclusive and analyzes the implications of the results for portfolio construction. The first section of the paper reviews prior work. The following section provides a short description of the methodology used in collecting the data and in computing the results. The third section presents an analysis and interpretation of the results of the study. The final section of the study discusses the implications for portfolio construction of the findings which show considerable variation in mean ex post returns and correlation coefficients among the various media.

Recent Foreign Direct Manufacturing Investment in the United States

Abstract: The study of direct investment movements has become increasingly important in recent years due to the impact that these movements have on development, balance of payments, and domestic control of the domestic economy. From 1954 through 1967, the value of foreign direct investment in the United States grew from d4.6 billion to d9.9 billion. Concomitant with this growth has been an increase in interest in the United States to attract foreign investment. At the national level the interest has evolved because of balance of payments problems; whereas, at the state and local level, interest is due to industrial development objectives.© 1970 JIBS. Journal of International Business Studies (1970) 1, 125–132

The Andean Foreign Investment Code: A New Phase in the Quest for Normative Order as to Direct Foreign Investment

Abstract: Signs of inadequacy and crisis in general international law as to the economic ownership interests of aliens have been numerous since World War II. The pages o f the J ournal have recorded and analyzed a number of situations in which the existing legal order is not working well: ineffectual resorts to international adjudication; unilateral disregard of arbitral commitments; national decisions made in the name of international law but of dubious international acceptability; professional frustrations so intense as to have directed prime attention to happenstantial “salvage” operations. In a phase now apparently ended, groups in capital exporting countries have tried time after time to put forward normative formulations of investment codes as new positive law, only to have their efforts ignored in developing countries. Now we seem to be in a new phase, one in which direct investment-receiving, or host, countries, organized into groups or regional arrangements, compact among themselves that a comprehensive normative system shall prevail in each of them as to the legal relationships between foreign investors and each of those countries. Although foreign investment codes for particular states, including systems of prior restraints on entry in some developed countries, are not new, the Andean Foreign Investment Code is, indeed, a new juristic phenomenon. The Editors of the Journal have wished, therefore, to record and analyze preliminarily this new development in transnational investment law, one whose text has been carried in International Legal Materials and considered as to its possible impact in Research Panels organized by the American Society of International Law.

The Outlook for United States Foreign Direct Investment in the Andean Pact Countries in the Seventies

Abstract: THE GENERAL LATIN AMERICAN VIEW OF PRIVATE FOREIGN INVESTMENT:The climate for private foreign direct investment is deteriorating rapidly in many countries of Latin America as the socialization of development is becoming not only more widespread, but also more leftist-oriented. Paradoxically, the gap between the lip-service paid to, and actual policies adopted regarding private foreign investment in this region, is increasing as rapidly as is the need for such external investment inflows. The contemporary Latin American attitude towards private foreign direct investment, especially with respect to investments by international corporations, is summarized below.© 1972 JIBS. Journal of International Business Studies (1972) 3, 69–94

MEASUREMENT OF THE GAINS FROM FOREIGN OWNED CAPITAL - The Canadian Case

Abstract: The main body of theory concerning international investment has dealt primarily with the derivation of the conditions under which it is necessary to either subsidize or tax traded goods and foreign investment in order to obtain the optimum level of foreign investment for the welfare maximization of either the host or lending country. Using the two sector, two country model where only one factor is mobile but both goods are traded, a number researches have concluded that under competitive conditions, capital-rich countries tie up too great a proportion of their resources in foreign ventures. This paper considers this issue in a world where there is taxation in the host and in the home country of the foreign investor.

The impact of U. S. regulatio of foreign investment

Abstract: Since 1968, U.S. multinational companies have been operating under compulsory governmental restrictions upon foreign direct investment, administered by the U.S. Department of Commerce, Office of Foreign Direct Investment. This study asks to what extent the imposition of OFDI regulations led firms to depart from traditional corporate financing policies or techniques, and what relationship this reaction had to evolution and change in the money and capital markets.

Investment Analysis-A New Approach

Abstract: Introduction When someone invests money on the stock-exchange, and this applies especially to institutional investors such as the giant international companies (and the government) lie expects to make more money than the value of his original investment To offset this golden vision of receiving large amounts of cash for doing absolutely nothing, he has given up (temporarily at least) the possibility of using those resources which form the investment. In other words, investment is simply ’pay now, live later’. The obvious need for resources to start an investment gave rise to the old phrase ’you need money to make money’, but this contains a suspicion of envy which is no longer valid. The rise of the Unit Trusts means that for the cost of a holiday anyone can ’play the market’, albeit one step removed from more direct forms of investment. The Daily Mirror has a column devoted to news in the City of London, the stronghold of Conservatism (and conservatism). Investment is an industry in itself and wherever a large market is involved new and improved methods are bound to arise. This is, of course, where investment analysis comes in. When large sums of money are involved, the best available techniques are employed; and so, as in many other fields, ’art’ is replaced by ’science’. This simply means that more thorough, more costly, more time-consuming, more everything methods are used because the risks are also greater, and people hate to lose money. However, the art of investment still holds forth in many quarters and some small piece of evidence for this is embodied in the following from Cohen and Zinbarg (1967) about American investors: