Rapid Growth of two way Investment

Currency Forward, Economic and Market, Exchange Rate

Belum ada komentar

Rapid Growth of two way Investment
The investment chapter of AUSFTA prohibited foreign exchange restrictions, local content restrictions, preferences for national suppliers and exclusive supply arrangements, encouraging greater two-way flows of direct and portfolio capital. In general, AUSFTA applied MFN treatment and national treatment to investors and prohibited performance requirements on all investments. Partly as a result, U.S. direct investment in Australia doubled from 2006 to 2011, from US$67 billion to US$136 billion and cumulative FDI in Australia exceeded the stock of US FDI in other regional economies (see table)).

Further, the U.S. is the largest FDI investor in Australia, ahead of the United Kingdom, Japan, and China. By 2011, Australia had become the tenth largest investor in the United States and Australia was the eighth largest destination for US cumulative direct investment (BEA, 2012). According to the Australian Bureau of Statistics, total Australian investment in the United States was A$410 billion at end-2010 (stock) of which A$93 billion was direct investment while the United States was the leading investor with a stock of A$550 billion at end-2010, with A$120 billion in FDI stock and the balance a mix of portfolio, indirect and derivatives investment. Two-way investment flows occurred in a broad range of industries. These transferred a package of capital, technology and know-how to the host country.

• The largest single investment over made in Australia, as well as the leading US investment and is forecast to generate US$300 billion worth of LNG to customers in the Asia-Pacific over the next 20 years (Citibank, 2012).

By mid-2012, there were over US$150 billion in projects are currently under construction. Measures of investment flows and stock differ significantly by country ± suggesting that new tools and measures could be needed to more accurately assess the scale and direction of changes in trade in goods and services as well as the role of services delivery through overseas affiliates. The direction of investment is also unclear under existing measures.

Holding companies accounted for 39 per cent of US FDI stocks in 2010, concealing the actual industry of investment for taxation and administrative purposes. The proportion for Australia was significantly lower at 12 per cent. In 2008, Australian companies had assets of US$280 billion in the United States, with affiliate sales of US$178 billion, net income of US$18.3 billion, wages of US$20 billion and employment of 322,000 (BEA, 2011).

US-Australia flows of FDI, 1986-2011 (US$ million) and the A$/US$ rate