About the book
Liberalization of capital markets has caused exponential growth of foreign direct investment at the last turn of the century. The developments in recent years have shown however, that not only the countries have put limitations to foreign investors but also that dynamic economic developments in the surge of financial and economic crisis and later have clearly exposed the possibility for the direct foreign investment to turn their direction in the sense of foreign direct divestment. The balance of payment theory kept its sense with explaining the need to equilibrate the trade balance disequilibria through the surplus of the financial account – by means of foreign capital investment. However, experiencing their incapability to participate in globalization and liberalization of capital flows on equal basis the host countries dropped their political and economic support to (some) international investments.
The aim of this book is to look at specific country experiences, at determinants of foreign direct investment that could be connected to the new course of divestment. Here we mean factors influencing divestment decision making, major trends and developments of foreign direct divestments in different industries. Foreign direct divestment by multinational corporations carry important economic implications, therefore chapters in the book can cover also topics related to economic effects of foreign direct divestment, effect of different types of divestments on the economy, performance effects of foreign direct divestment etc. This book will interest economists, government officials, and business people concerned with foreign direct divestment today.