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Identify a host country that has a high repatriation risk for companies that engage in foreign direct investment. Once you have identified the country, observe the last balance of payments issued by the country. Does the selected country appear to be protecting its balance of payments? What implications are there for a multinational corporation that experiences delays, sometimes for many years, in the repatriation of cash flows?

Category: Economics Paper Type: Online Exam | Quiz | Test Reference: CHICAGO Words: 280

Answer) Morocco is one of the countries that is making necessary efforts in attracting FDI among businesses investing in Morocco. It facilitates the foreign companies through macroeconomic policies, trade liberation, and strategic structural reforms. According to balance of payment of Morocco, the country has attracted the consistent and right flow of the foreign investment and capital. The set strategies of Morocco are based on the consistency in foreign debt conversion to massive investment, operation of public concessions and services, and national privatization programs. This is how Morocco protects its balance of payment. It is evident in many foreign investments like energy projects, industries, banking, and tourism in Morocco that support MNCs promoting the repatriation of the cash flow. Furthermore, in Morocco, the level of foreign direct investment has been modest while making a significant contribution towards improving the economic growth and development of the country (Bouoiyour, 2007).

Reference of cash flows

Bouoiyour, J. (2007). THE DETERMINING FACTORS OF FOREIGN DIRECT INVESTMENT IN MOROCCO. Savings and Development, 91-106.

 

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