2. = ? Occurs when a company makes an investment in a foreign country, e.g. construction of a factory, distribution centre, FDI is also when a foreign company buys 10% or more of a local company Write down an example of real life FDI from P197/8 Do Getting started Do Q1

3. Which country do you think has the most FDI into Thailand? http://www2.bot.or.th/statistics/BOTWEBSTAT.asp x?reportID=75&language=ENG Many countries actively encourage FDI by;  Tax breaks, subsidies, grants, low interest loans  Lift restrictions & regulations  Invest in infrastructure  Invest in education http://www.fdiatlas.com/area/Asia/India/incentiv es

4.  What is it? = money & other forms of assistance given to less developed countries The purpose is to help with long-term development of a nation DA is not the same as humanitarian aid, which is given to relieve a short-term problem, e.g. famine, war Note down some of the projects DA is needed for (P199)

5. 1. Bilateral (one country to another) or multilateral (many countries give money to an international organisation, e.g. World bank) 2. Grants; cash gift 3. Loans; with better than market rates 4. Tied aid; $ donated given certain conditions are met, e.g. contracts awarded to donor country http://www.oecd.org/dac/aidstatistics/aidataglan cebydonorrecipientandregion.htm Do Q2

6. FDI & DA’s effects; (brainstorm)  quicken globalisation  help LDCs develop faster  as LDCs grow global markets expand Do exam practice Investigate 1 LDCs and the benefits they have got from FDI/ DA