what is advantage and disadvantage for FDI(foreign direct in
发布时间：栏目：英语答案
what is advantage and disadvantage for FDI(foreign direct investment)
better use english to answer this question thanks
better use english to answer this question thanks
问题解答：
- This is a really big topic!
There are even academic papers on it.
Here's 3 different answers I found on the Internet:
1.
"The advantages of the Foreign Direct Investments are that the majority victorious domestic companies,particularly those with only one of its kind compensation,spend abroad.The second advantage to be considered to be is the direct investment that makes companies more victorious internally.Companies with Foreign investment generally tend to be most profitable as well as it is to have a more stable sales and earnings.The disadvantages of foreign direct investments are cost of travel and communications abroad.It also does not very much relate to local business tax laws,business atmosphere in particular and other government regulations.Another disadvantage could be the language and culture differences."
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2.
Advantages:sells at 12% discount to net assets.Distribution rate is 5.6%.Has a long track record.Been in existance since 1972.
Disadvantages:invests in debt instruments which are subject to interest rate fluctuations.Income is mostly taxable at full tax rate.5 year total return rate is only 4.95%.
Here are a couple of alternatives that you may wish to consider.
GIM.Invests in foreign government bonds mostly.Current distribution rate is 5.5%.Pays distribution monthly as opposed to quarterly.This is rather a bet that the value of the dollar is going to keep falling.5 year total return rate is 15%.I year return rate is 23%.Now for the bad part.Currently trades at a 2% premium to net assets.ERC is a similar fund but is leveraged.It is selling at a discount of about 7% and currently pays a monthly distribution of 8%.It does have a somewhat high expense ratio though of 1.13%.You might also wish to consider BWC.This is an equity fund,but pays a monthly distribution of about 8.3%.It is a newer fund and does not have much of a track record but life to date has yielded 19% annually.Invests mainly in foreign equities.Largest holding is Royal Dutch,followed by Petro China.But both make up less than 3% of the total holdings.Because this is a world equity fund,there is a good chance of captial gains.The dividends are taxed at the favorable dividend rate rather than the full rate.
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3.