ABSTRACT

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book discusses the wide variety of forces that underlie the rationales for foreign direct investment (FDI) restrictions as well as the rationales for liberalization. These forces have been grouped under three themes: national economic conditions, national political conditions, and international economic and political conditions. The book then discusses regulations that limit FDI percentage ownership to less than 100 per cent, and it examines the issue of 'control' within the context of varying percentages of equity ownership. It describes and analyzes restrictions on FDI in specified sectors. The book also examines alternative government policies and programs that might be used by host governments in place of FDI restrictions in order to achieve their economic and political goals. It then focuses on the experiences of Canada, Ghana, India, Indonesia, Mexico, Morocco, the Philippines, the Republic of Korea, Spain, and Venezuela.