World Investment Report 2008 issued a few days ago by United Nations Conference on Trade and Development (UNCTAD) stated that flow of foreign direct investment across the globe this year will be 10% less than that of 2007 due to reduction of expense of global large companies and fewer activities of merge and acquisition (M&A).
The Report said that though there appeared the global financial and credit crises in the latter of 2007, the flow of foreign direct investment across the globe stood at USD1.83t.
However, flow of foreign direct investment all over the world has declined this year, which mainly results from slowdown of the world’s economy and appearance of liquidity crisis in financial markets of many developed countries caused by restless financial markets, so that M&A activities of companies apparently decreased. Statistics showed that in the first-half year, cross-national M&A trade volume fell by 29%, compared with the second half of last year. The M&A trade volume of last year amounted to as much as USD1.64t.
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