International agreement of FDI For seeing the FDI agrememnt by international parties we have to see the past record

of countries with respect of laws for FDI and market sentiment of the companies. We assessing these things I have consultedpolicies of countries with respect to FDI and 2010 record of FDI investment in different countries. Standard an poors was also seen while calculating the ranking. Country Iraq Ranking 4 Reason Since 2003, Iraqs economic policy has been to open its markets and foster a business-friendly environment to attract FDI and facilitate trade. It has reformed laws and regulations governing the formation and registration of companies; foreign investment; import, export and customs valuation; intellectual property; banking and bankruptcy. It has also begun joining or rejoining key international organizations and conventions aimed at bolstering the investment climate. Iraq also passed a new Investment Law in 2006 which created the NIC. 199,400,000,000 USD is invested as FDI in this country in 2010 according to CIA World Factbook. The Japanese government imposes few formal restrictions on inward FDI, and it has removed or liberalized most legal restrictions on specific economic sectors.. 574,300,000,000 USD is invested as FDI in this country in 2010 according to CIA World Factbook. China has been outstandingly successful in recent years in attracting FDI. However in terms of effective technology transfer and learning, many imperfections remain. These imperfections are often policy induced. The policy outline conflict must be addressed to main the FDI inward pace. 30,090,000,000 USD is invested as FDI in this country in 2010 according to CIA World Factbook. Pakistan has taken wide-ranging steps to liberalize its inward investment regime and have succeeded in attracting substantial amount of foreign investment. Despite significant deregulation and various incentives/concessions given to foreign investors, Pakistan still faces serious problems as far as implementation of investment policies are concerned. Since 1994, the government has implemented macro- and microeconomic policies that are geared towards creating an enabling business environment for both local and foreign investors. 72,410,000,000 USD is invested as FDI in this country in 2010 according to CIA World Factbook. During the second half of the past decade, Egypt became a major recipient of FDI among emerging markets. Favorable external conditions coinciding with major internal reforms were the main drivers of growing FDI that reached a record high both in absolute

Japan

China

Pakistan

South Africa

Egypt

Nigeria

Zimbabwe

Brazil

Argentina

Chile

United States

Germany

8.5

Poland

8.5

terms and relative to GDP. 67,230,000,000 USD is invested as FDI in this country in 2010 according to CIA World Factbook. Nigeria receives the largest amount of Foreign Direct Investment (FDI) in Africa. Foreign Direct Investment inflows have been growing enormously over the course of the last decade: from USD1.14 billion in 2001 and USD2.1 billion in 2004, Nigerias FDI reached USD11 billion in 2009 according to UNCTAD. Country is open for foreign direct investment (FDI) however given the land grabs of the past decade and the continuing uncertainty about the indigenisation policy, investors remain sceptical. 349,200,000,000 USD is invested as FDI in this country in 2010 according to CIA World Factbook. The FDI comes to Brazil mainly by its large internal market. But a large internal market by itself is not a guarantee of global competitiveness. Indeed, small but agile countries have shown that they can compete with far larger economies for the location of prime investors. Being large still counts, but is no longer enough. Also, it is not enough to create a legal structure to adequate laws and regulations, but the application/enforcement of these laws and regulation as well. 86,800,000,000 USD is invested as FDI in this country in 2010 according to CIA World Factbook. Following the sharp decline registered in 2009 as a consequence of the global crisis, FDI inflows are expected gradually to recover in 2010 as growth in the world and in Argentina. 136,300,000,000 USD is invested as FDI in this country in 2010 according to CIA World Factbook. a countrys legal framework is an important determinant of its ability to attract FDI. There is no doubt that this has been a key factor in Chile where the legal framework has helped to ensure stable and predictable rules and procedures. Foreign investors find investing in the United States advantageous for many economic and political reasons. Recent currency fluctuations have essentially lowered the price of U.S. companies to foreign investors. In addition, lower production costs in the United States in relation to rising real wages, falling productivity, and increased taxes abroad make the United States attractive to foreigners. 1,057,000,000,000 USD is invested as FDI in this country in 2010 according to CIA World Factbook. Germany has very good low tax areas for doing business and investing money. 198,800,000,000 Poland ranked as the most attractive destination for new foreign investment in Europe by Ernst&Young in the European attractiveness survey 2008.Poland, which

Russia

opened to FDI only in the early 1990s, is rapidly climbing the ladder of the worlds significant host countries, reaching the 21st position in 2008 as regards its FDI stock. FDI inflows reached the record of US$ 23 billion in 2007. 306,800,000,000 USD is invested as FDI in this country in 2010 according to CIA World Factbook. Russian rankings in the Doing Business Survey and Enterprise Surveys are below the means in almost all respects and they worsened in recent years.

Privatisational policy of countries For seing the privatization policy of countries we have see what type of goverment (republic, kingdom, communism) exist in that State and also past behavior of the countries on abrupt policy change and political stability of that countries. Country Iraq Japan Ranking 5 9 Reason Recently stands have been taken to privatize certain sectors due to inefficient management and economy is unstable. The largest privatization in history involved Japan Post. It was the nation's largest employer and one third of all Japanese government employees worked for Japan Post. Japan Post was often said to be the largest holder of personal savings in the world. Since the mid-1990s China has embarked on a major program to privatize its industries. Beijing has dressed its privatization efforts as an attempt to "diversify the ownership structure", and promised to confine the denationalisation of industry to the "smaller firms" and the "less-essential" sectors. From the regime of Nawab sharif Pakistan privatization started and is going on continuing due to large fiscal deficit and improper and inefficient management of sectors by government. Pakistan has taken wide-ranging steps to liberalize its inward investment regime and have succeeded in attracting substantial amount of foreign investment. Despite significant deregulation and various incentives/concessions given to foreign investors, Pakistan still faces serious problems as far as implementation of investment policies are concerned. South Africa is opting for privatization but the privatization is very slow and not easy. Obstruction are created from conflicting aims, powerful trade unions and public firms are in a mess, over-staffed and deep in debt. Then also Since 1994, the government has implemented macro- and microeconomic policies that are geared towards creating an enabling business environment for both local and foreign investors. Egypt undertook widespread privatization under President Hosni

China

Pakistan

South Africa

Egypt

Nigeria

8.5

Zimbabwe

Brazil

Mubarak. After his overthrow in the 2011 revolution, the association of the newly private businesses with the crony capitalism of the old regime along with the new look at longfestering labor and police-state issues have led to calls for renationalization. Privatization in Nigeria was formally introduced by the privatization and commercialization Decree of 1988 as part of the Structural Adjustment Programme (SAP) of the Ibrahim Badamosi Babangida administration (1985 93). Since then number of policies have been constituted for making privatization like a act in Public Enterprise (Privatization and Commercialization) Act 1999. Threats are given to nationalize the companies and sudden policy change is also there and also there are number of sactions for country. Number of steps are taken by new President Dilma Rousseff to
privatize number of induties and sector to increase growth rate and reduce deficit. These steps included privatization of railways, roadways, ports etc

Argentina

Chile United States

9 9

Germany

Poland

Russia

Argentina benefitted from the global wave of FDI between 2004 and 2008. This country has been following privatization in parallel with UK and slowly slowly they are privatizing but important sectors like communication, electricity are still under control of State. Chile started privatization since 1970 and number of legal frame work have been constituted for the same. US is a capitalistic economy and very supportive for private party and mist of the things in us are in private hands .Foreign investors find investing in the United States advantageous for many economic and political reasons. After rapid privatization during 90s the country is on hold on privatization. Hold was due to to inaprroprite privatization policy that was used in 90s due to which country does not like privatization. 4year privatisation acceleration program was adopted by the Council of Ministers on 22 April 2008. Also Investor Relations Centre established at the Ministry of Treasury for support of private partners. The process now fasttracked and Improved from previous years. Privatization of state-owned industrial assets that took place in Russia in the 1990s, during the presidency of Boris Yeltsin ,immediately after the dissolution of the Soviet Union, where private ownership of enterprises had been illegal for a long time. On October 2010 the Russian government has approved a plan to privatize a wide range of state property from energy to agriculture and banking to transportation. Country has identified that for the growth of country privatization should continue.