2005 Foreign Direct Investment Confidence Index®

Global Business Policy Council 2005, Volume 8
Foreign Direct Investment (FDI) is on the rise again. But the corporate savings overhang and investor pessimism about the global economy could dull the recovery of cross-border corporate investment. Concerns over corporate financial health, an unexpected economic downturn, shareholder activism, and the risks associated with engaging in FDI have caused investors to hoard cash over the past four years. As investors face more intense competition and the lure of higher returns overseas, they are cautiously unloading their accumulated war chests.