Why do we prefer “GDI” – Global Direct Investment – to “FDI”?
It may be noted that we use the term “global direct investment” in this business because we believe the notion of FDI is largely outdated. It reflects old nationalist or mercantilist approaches to industrial development policies which do not reflect this new era of global business mobility and communications. There are unprecedented cross-border opportunities for relatively free trade despite the continued intervention of some governments in specific trade and investment flows. Governments intervene in markets to advance their perceived interests, which can yield bad results despite any good intentions. Businesses have limited ability to influence foreign (or their own) government policies and actions, for better or worse. We think that what really matters for economic development is the global flow of successful capital investment projects from any one local area to any other, or within a region. Every area needs more successful businesses as the key to economic prosperity. No matter
