Chinese direct investments in Latin America reached US$15 billion in 2010, 90% of which was in the extractive industries. An analysis of the figures shows that it is mainly through trade, rather than through FDI that China is influencing South America's productive structure. Moreover, there is...

FDI is now the largest external liability in developing countries and is being paid through outflows of FDI income, or profits of foreign companies. These profits have grown to a point in which they may play an important role in a potential balance of payments crisis.

Proposals to reform corporate tax in the United States want to encourage domestic investment by American companies. The reform may trigger a large repatriation of accumulated foreign earnings, but most of this inflow will not be directed to productive investments.

This second edition of this publication provides an overview of important contemporary issues relating to foreign direct investment (FDI) and multinational enterprises for all those who are interested in this subject, but are not always in a position to follow diverse perspectives and what is...