Question

Analyze the main policies on FDI/OFDI of Luxembourg .

Analyze the relationship between and other variables like FDI&OFDI , FDI &export ,FDI&import, FDI&employment ... in Luxembourg

Answer 1

Answer:- Main policies of FDI/ OFDI of Luxembourgburg: Foreign Direct Investment (FDI) flows record the value of cross-border transactions related to direct investment during a given period of time, usually a quarter or a year. Financial flows consist of equity transactions, reinvestment of earnings, and inter company debt transactions.

direct investment (FDI) and international trade of these nations are substitutes or complements, i.e., whether a greater stock of FDI held by a nation is associated with decreases or increases of its exports and imports. This is an issue that has long concerned policymakers in the large industrial nations, who have worried about possible negative effects of outward FDI upon the nation's balance of payments and employment of its work force.In principle, either relationship between FDI and exports-complementarity or substitutability-could hold. FDI takes place when investors, usually multinational firms, based in one nation (the "home" nation) establish operations under their managerial control in some other nation (the "host" nation). Often,the motivation is to produce locally inthe host nation products that had previously been exported from the home nation, and to the extent that this happens, FDI and home nation exports are substitutes.