Hi, guys. Welcome back to Global Business Environment course two. We are in module six, and this will be part three. In which we've been trying to understand, what are the current trends affecting the global business environment? We've been focusing on emerging economies and their increasing importance in the global business environment. And we talked last time about the stock or value, total cumulative value of foreign direct investment by country across the globe. Now, we're going to look at the total value of received investment. And so this is by country the total value within for example France. The total value of foreign businesses, plants manufacturing facilities, et cetera that are directly controlled by an entity or an organization in another country. And so we see that across the globe the United States continues to dominate with, in 2013, almost $3 trillion in received investment. So not only is the United States of America the leader in sending foreign direct investment abroad, American companies are the global leaders in investing overseas in foreign countries. But the United States of America is also the host location, the leading host location for Japanese, European, Chinese Latin American investments from all across the globe. We see that Great Britain, which was number two in sending foreign direct investment is also leader in receiving. We see Hong Kong and China, at the very top of this list. Again, this is a big change. 30 years ago China would not have been a major player in receiving foreign direct investment. The economy was structured much differently with different regulations and different policies with respect to borders. We see Brazil has wo, the fi, the, one of the brick countries as a major recipient over $600 billion of received foreign direct investment. Russia, Mexico, India, some of our other major emerging economies also have leaped up on this list. Many people think that especially in well depending on your choice of of source of information sometimes you hear strong criticism of companies from developed economies like those from Europe. For example and the, the criticism is that these companies from Europe are taking advantage of regulations and labor law, and wage differences, and it's hurting the local people in emerging economies. the, the reality is 30 years ago most of these emerging economies had very closed borders and hadn't received even close to these levels of foreign direct investment. And so if there is any taking advantage going on, it's only occurred in the last 30 years. 30 years ago, you didn't go into Mexico or Brazil and see the major operations of Japanese, European, Chinese United States companies from the United States, et cetera. This is a new phenomenon in today's world and this is an explosive growth in, in received investment on the part of these emerging economies. One thing I wanted to emphasize before we conclude this topic is to go back, when we talk about countries that have sent investment abroad. we, we mentioned that, that the emerging economies, the BRIC nations, the MINT or MISS nations, have become important investors. in, in foreign countries across the globe and this again is a new phenomenon these countries had much different regulatory systems 30, 40, 50 years ago. And there weren't strong companies or brands coming out of these these countries. Many of these countries have been dominated by state owned enterprises, SOEs. These are companies or entities that are owned by the government in any given nation. And every nation has these just some have more. So these are assets controlled by a government and in some cases, in today's world the investments being made abroad. Are by governmental-owned entities. For example, some of the investment made by Chinese companies abroad is are made by entities or organizations or companies that are owned by the Chinese Government. The same can be said for many other companies from many other countries around the world. In other places we've seen privatization occur, where these state owned companies have been sold to private investors with mixed results to be fair, and, and some of those companies have made investments abroad to try to grow an succeed. Other companies have grown from domestically focused to be major global pay, players. One of them that we typically look at is a major cement company from Mexico called CEMEX, Cementos Mexicanos. And Cemex has grown from a largely Mexican focused company to a company with operations all around the globe. And so these are facilities plants distribution centers that that Cemex, with its headquarters in Mexico controls around the world they have made this growth through acquisitions. But it's the, it's the success of the Mexican economy that changes the reforms over the last 30 years, which has given Mexican companies like Cemex word the strength to to build on the foundation to then grow abroad. And this is then contributing back to the local economy as as these companies succeed. And so again, this is all a new phenomenon but when we talk about this foreign direct investment and foreign direct investment from countries around the world and when we talked about the brick and the mist and the mint, this 141 billion for example, from Mexico is made up of investments from companies like Cemex. And the same could be done, the same analysis could be done for Brazil, India or any other emerging economy that we would like to analyze. And so this is a new development. The rise of emerging market multinationals. And it's an important phenomenon to pay attention to, because more and more, we may see competition arise from emerging market nations that may outcompete many established multinationals with newly acquired skills and technology and innovation. And so this is a, a great a great thing to watch as we move into the future of the global business environment. So we'll end now this part part three. And next time we'll pick it back up and, and take a little different direction as we discuss another aspect of today's current global business environment. Thank you very much. We'll see you back next time.
