How Globalization Works part 2

How Globalization Works part 2 - How Globalization Works...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
How Globalization Works part 2: Policies toward foreign direct investment and portfolio capital: Foreign direct investment – many states will impose conditions on other states doing business within their borders. They may insist on domestic content restrictions. Many states in the past have imposed domestic content rules, demanding that any goods imported have some content that is produced within the state. This essentially protects domestic industries. Furthermore, states often insist that foreign companies export a large share of production, use domestic inputs, help local suppliers reach international standards, and transfer technology. These policies are known as TRIMs (Trade related investment measures) and TRIPs TRIMs are banned under WTO rules, thus eliminating the possibility for states to enact policies to favor domestic industries and place restrictions on foreign industries. In essence, the ban on TRIMs requires that all WTO members extend national treatment to foreign corporations operating with its borders. TRIPs (Trade-relative intellectual property issues) have become very controversial in
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.
Ask a homework question - tutors are online