Foreign direct investment Sample Clauses

Foreign direct investment. Foreign direct investment is another factor that has been associated with economic growth. The majority of the existing evidence seems to suggest that there is a positive impact between foreign direct investment and economic growth. There are many reasons to expect such an impact. For example, foreign direct investment increases the rate of technical progress in the host country through a ‘contagion' effect from the more advanced technology, management practices, etc. used by the foreign firms. Xxxx incorporates this idea into a model more in line with the neoclassical growth framework, by assuming that the increase in ‘knowledge' applied to production is determined as a function of foreign direct investment (FDI).158 Theory on the impact of foreign direct investment on economic growth throws up conflicting arguments. The economic rationale for offering special incentives to attract foreign direct investment stems from the assumption that foreign investment produces externalities in the form of technology transfers and spill-overs. Xxxxx, for example, argues that important ‘ideas gaps’ exist between rich and poor countries.159 He notes that foreign investment can ease the transfer of technological and business know-how to poorer countries. According to this view, foreign direct investment can boost production of all firms – not just those receiving foreign capital. Thus, transfer of technology through foreign direct investment may have substantial spill-over effects on the entire economy. In contrast, however, Xxxx and 158 Xxxx, X-X. (1990), ‘Growth, technology transfer, and the long-run theory of international capital movements’. Journal of International Economics 29, pp. 255–271.
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Foreign direct investment. The reasons for the US trade deficit with Mexico can be explained by the rapidly growing inves- tments in Mexico form private investors trying to take advantage of the duty free access to the US market as well as lower labor costs. According to Xxxxx (2011), NAFTA made Mexico a safer and attractive place for investors to outsource the US manufacturing production thanks to mechanisms for solving disputes that were part of the agreement. With NAFTA, investments in Mexico grew up at 2.9% a year, on average, almost three times the rate before the agreement. The US was the largest source of foreign direct investment in Mexico, going from $17 billion in 1994 to $97.9 billion in 2009, at a rate of 477% (Xxxxxxxxxx, 2011). And that was actually what Mexico was looking for by opening its markets. Most of these investments took place during the first years after the agreement was enforced. After that, the US investments in Mexico decreased as well as the trade as the result of the 2008 crisis, the increased violence in Mexico, especially at Northern Border States, and the increasing role of China in the international market (Xxxxxxxx, 2004). Most of these investments went to the manufactu- ring industry as maquilas9, whose number expan- ded from 1,920 in 1990 to 3,590 in 2000. In total, 5,245 export assembly plants (maquilas and other manufacturing) existed in Mexico by 2009, textile apparel and automotive industries being the main target. After all, key provisions of NAFTA encourage investment liberalization probably more than trade liberalization10. 9 Factories that import material and equipment on tariff free basis for manufacturing and re-export the products back to the country of origin.
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Foreign direct investment. Any investment by the Bidder, which is a foreign company and not registered under Companies Act 1956/ 2013, shall comply with the latest Foreign Direct Investment (FDI) policies as issued by Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India (GOI) and other rules and regulations as notified by GOI and Reserve Bank of India. The Bidder shall acquaint himself with all the policies and implications if any, for the proposed Proposal before submission of the Proposal.
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Foreign direct investment. 1. Austria
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Foreign direct investment. No Equityholder shall make any filing, take any position or take any other action (and each Equityholder represents that it has not made any such filing, taken any such position or taken any other such action) that is inconsistent with, or reasonably likely to result in a revocation of, the treatment of the Contributions (and/or any additional or subsequent investments in or contributions to the Company by the parties hereto) as a “foreign direct investment” under the Foreign Investment Promotion Act, the Commercial Code and the Special Tax Treatment Control Act, in each case of the Republic of Korea.
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Related to Foreign direct investment

  • Passive Foreign Investment Company The Company shall conduct its business, and shall cause its Subsidiaries to conduct their respective businesses, in such a manner as will ensure that the Company will not be deemed to constitute a passive foreign investment company within the meaning of Section 1297 of the Code.

  • Small Business Investment Company Buyer is a small business investment company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958.

  • Foreign Investor If such Investor is not a United States person, such Investor represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Agreement, including: (i) the legal requirements within its jurisdiction for the purchase of the Securities, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Securities. The Investor further represents that its payment for, and its continued beneficial ownership of the Securities, will not violate any applicable securities or other laws of its jurisdiction.

  • Regulated Investment Company Status During the 12-month period following the Closing Time, the Company will use its commercially reasonable efforts to qualify and elect to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) and to maintain such qualification and election in effect for each full fiscal year during which it is a business development company under the 1940 Act.

  • Foreign Investors If Subscriber is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Subscription Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Securities, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Securities. Subscriber’s subscription and payment for and continued beneficial ownership of the Securities will not violate any applicable securities or other laws of the Subscriber’s jurisdiction.

  • Foreign Asset Sales Notwithstanding any other provisions of this Section 5.2, (i) to the extent that any or all of the Net Cash Proceeds from a Casualty Event of, or any asset sale by a Restricted Foreign Subsidiary giving rise to an Asset Sale Prepayment Event (a “Foreign Asset Sale”) or any amount included in Excess Cash Flow and attributable to Foreign Subsidiaries are prohibited or delayed by applicable local law from being repatriated to the United States, such portion of the Net Cash Proceeds or Excess Cash Flow so affected will not be required to be applied to repay Term Loans at the times provided in this Section 5.2 but may be retained by the applicable Restricted Foreign Subsidiary so long, but only so long, as the applicable local law will not permit repatriation to the United States (the Borrower hereby agreeing to cause the applicable Restricted Foreign Subsidiary to promptly take all actions required by the applicable local law to permit such repatriation), and once such repatriation of any of such affected Net Cash Proceeds or Excess Cash Flow is permitted under the applicable local law, such repatriation will be immediately effected and such repatriated Net Cash Proceeds will be promptly (and in any event not later than two Business Days after such repatriation) applied (net of additional taxes payable or reserved against as a result thereof) to the repayment of the Term Loans as required pursuant to this Section 5.2 and (ii) to the extent that the Borrower has determined in good faith that repatriation of any of or all the Net Cash Proceeds of any Foreign Asset Sale or Excess Cash Flow would have a material adverse tax consequence with respect to such Net Cash Proceeds or Excess Cash Flow, the Net Cash Proceeds or Excess Cash Flow so affected may be retained by the applicable Restricted Foreign Subsidiary, provided that, in the case of this clause (ii), on or before the date on which any Net Cash Proceeds or Excess Cash Flow so retained would otherwise have been required to be applied to reinvestments or prepayments pursuant to Section 5.2(a), (x) the Borrower applies an amount equal to such Net Cash Proceeds or Excess Cash Flow to such reinvestments or prepayments as if such Net Cash Proceeds or Excess Cash Flow had been received by the Borrower rather than such Restricted Foreign Subsidiary, less the amount of additional taxes that would have been payable or reserved against if such Net Cash Proceeds or Excess Cash Flow had been repatriated (or, if less, the Net Cash Proceeds or Excess Cash Flow that would be calculated if received by such Foreign Subsidiary) or (y) such Net Cash Proceeds or Excess Cash Flow are applied to the repayment of Indebtedness of a Restricted Foreign Subsidiary.

  • Economic Sanctions None of the Company, the Sponsor, any non-independent director or officer or, to the knowledge of the Company, any independent director or director nominee, agent or affiliate of the Company is currently subject to any sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”) or any similar sanctions imposed by any other body, governmental or other, to which any of such persons is subject (collectively, “other economic sanctions”); and the Company will not directly or indirectly use the proceeds of the Offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any sanctions administered by OFAC or other economic sanctions.

  • Not Plan Assets; No Prohibited Transactions None of the assets of the Borrower, any other Loan Party or any other Subsidiary constitutes “plan assets” within the meaning of ERISA, the Internal Revenue Code and the respective regulations promulgated thereunder. Assuming that no Lender funds any amount payable by it hereunder with “plan assets,” as that term is defined in 29 C.F.R. 2510.3-101, the execution, delivery and performance of this Agreement and the other Loan Documents, and the extensions of credit and repayment of amounts hereunder, do not and will not constitute “prohibited transactions” under ERISA or the Internal Revenue Code.

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