Report to Management

This report provides an information needed for an investment planning conferences related to
the foreign direct investment. Foreign Direct Investment (FDI) defined as the investment made
by the company in another country in some of the business interest in the form of acquisition
of other companies (subsidiary) or associate company in the foreign country, acquire
controlling interest or by joint venture/merger. (Investopedia, 2017). This report will convey
the information related to the FDI picture overview in the recent years, type of economy and
region that has highest FDI inflow, and countries in Asia and Latin America were reported to
have the largest inflow, as well as the info related to the industry and type of FDI, has the
largest.

According to the World Investment Report (2016), recently in the year 2015, the world has
experienced the highest level of the foreign direct investment global flows since the economic
crisis in 2008. The World Investment Report indicates that the highest FDI inflow in recent
years was reported in developed economy especially in Europe due to the buoyant of cross-
borders M&A sales. FDI inflows report shows that the developed countries represent 55% of
the total FDI inflows, this percentage growth from 41% from 2014. The developed country
represent 962 in billions of dollars and per cent out of 1.762 worlds total inflow in which
Europe contributed to 504 of the total inflows followed by North America, 429 billion of
dollars. Besides, the FDI inflows to developing Asia shows new hit records because it reaches
$541 billion 16% increase in number, while the level in Latin America remained the same
which is $168 billion. Based on the report on World Investment Report (2016), it is reported
that Singapore is the Southeast Asian country has a largest Foreign Direct Investment inflows
and ranked 5th in with $65 billion 2014 and $68 in 2015, while Brazil as a Latin America
country ranked 4th in Foreign Direct Investment (FDI) inflows with $65 billion in 2014 and
$73 billion in 2015. Furthermore, cross-border M&A sales in manufacturing industry has
reached its historical largest in 2015 since the share of manufacturing increase for 50% in 2015
which is about $38 and the global flows has risen to 38% to $1.762 billion in which cross-
border merger and acquisition was a vital factor behind the global rebound which is $721
billion in 2015 increase from $432 billion in 2014.

In a nutshell, Foreign Direct Investment (FDI) is growing 38% in the current year which is up
to $1.762 billion of dollars due to the enhance share level of cross-border merger and
acquisition as one of the principal factors that mostly derived by corporate reconfigurations
such as tax inversion. Developed economy especially Europe plays as the significant role by
contributing the largest share in worlds total FDI inflows. Besides, Singapore and Brazil as
the country from Asia and Latin America which represent the highest share of total FDI inflows
in the current year while the manufacturing industry and cross-border merger and acquisition
were the sector and type of FDI that has the highest level of Foreign Direct Investment (FDI).

References
Foreign Direct Investment (FDI). 2017. 06 May 2017.
<http://www.investopedia.com/terms/f/fdi.asp>.
World Investment Report . n.d. 07 May 2017.
<http://unctad.org/en/Pages/DIAE/World%20Investment%20Report/World_Investme
nt_Report.aspx>.