India announced new policies on Thursday governing foreign direct investment (FDI). A foreign firm that entered into a joint venture with an Indian firm prior to 2005 will no longer be required to obtain a no-objection certificate from its partner before establishing a wholly-owned subsidiary in the same field of business in the country. Foreign… Read more »

Investors reacted with great concern after the government of Zimbabwe announced new policies that require foreign-owned firms to surrender to indigenous Zimbabweans majority ownership stakes in local mining companies. The policies were announced as part of the implementation of an indigenization law the country enacted in 2008. Foreign-owned mining companies with a net asset value… Read more »

SOURCE: cbsnews.com DATE: March 27, 2011 This segment from the 60 Minutes episode airing March 27, 2011, profiles how the American tax code encourages U.S. companies to invest abroad rather than in the United States. After Japan’s tax code is revised in April, according to this segment the United States will have the highest corporate… Read more »

Portugal’s Prime Minister Jose Socrates resigned on Wednesday after Portugal’s parliament rejected a budget proposal. The austerity measures included in the budget included spending cuts and tax increases and the proposal was widely unpopular. The defeat of the budget is likely to force Portugal to accept a bailout from the European Union (EU) and the… Read more »

In a rare concerted move, the central banks of major economies intervened in the foreign exchange markets on Friday to keep the value of the Japanese yen from appreciating. The currency had been appreciating since last week’s devastating earthquake and tsunami, and the currency broke through to record highs in late-day trading on Wednesday. Trading… Read more »

The situation in Japan highlights the dangers of globally integrated supply chains. The devastating effects of the natural disaster have created product shortages for critical component parts. Disruptions to the power supply and damage to the transportation infrastructure are contributing to production challenges even for Japanese firms that were not directly damaged by the earthquake… Read more »

As Japan begins the difficult recovery process after Friday’s devastating earthquake and tsunami, the short term and long-term consequences of the wide-spread destruction on the nation’s economy are unclear. Immediately following the earthquake on Friday, the value of the Japanese yen rallied based on expectations that Japanese companies would bring cash home and buy yen… Read more »

The top appellate body for the World Trade Organization (WTO) ruled on Friday that the method the United States used to calculate punitive duties on certain Chinese goods violates WTO policies. The United States had imposed both antidumping and antisubsidy duties (i.e., countervailing duties) on certain Chinese imports of steel pipes, off-road tires and woven… Read more »

After indicating earlier in the week that he did not want to be considered for the post of the president of the European Central Bank (ECB), Axel Weber announced on Friday that he is resigning his post as Bundesbank President. Mr. Weber was considered the top candidate to replace ECB President Jean-Claude Trichet, whose term… Read more »

European Union (EU) leaders met over the weekend to discuss plans on how to restore confidence in the euro and to prevent a future euro-zone crisis. German Chancellor Angela Merkel informally presented a competitiveness pact designed to bolster the competitiveness of the euro-zone economies. The proposals, developed by Germany and supported by France, called for… Read more »