Research claims that Western Multinationals hit by the recession investing closer to their home markets.

A group of US multinationals has made a bid to fight the growing tide of protectionism by issuing a report advocating international expansion and global engagement as a route to economic recovery.

The latest World Trade Organisation (WTO) figures predict a 9% fall in world trade, the biggest drop since the Second World War.

In telecoms, until recently the picture had been one of strong growth and openness to FDI as countries have sought to modernise their telecoms infrastructures, expand mobile services and encourage competition among providers.

It is rare that the US government finds itself in the cross hairs of international arbitration panels.

Hotel giant Hilton is moving its corporate headquarters to Washington, DC, to reposition itself with a more global focus as major hotel chains pursue overseas expansion plans in order to survive current economic conditions in home markets.

The global of president Bausch & Lomb’s pharmaceutical division tells Lara Williams how the company’s global presence has helped it defy the economic slowdown, and that it now has Asia-Pacific, eastern Europe and Latin America in its sights.

Matthias Graf, head of engineering communications at Google’s Zurich office, tells Lara Williams how the site’s organic growth has been down to the company’s localised approach to project development, as well as Zurich’s desirability as a place to live.

When restructuring a multinational company, it is vital to have a clear understanding of the different global tax rules and their consequences, writes Anuschka Bakker.

Ontario suffers knock-on effect of floundering US car manufacturing amid fears of looming job losses.

Coca-Cola is to make a record increase in its investment in Brazil as the country’s growth in sales volumes exceeds the company’s global market average.

Mexico is raising tariffs on US exports in retaliation for the US Congress ending a pilot programme to allow Mexican trucks to use US roads.

$700m Texas windfarm
Australia’s Babcock & Brown’s San Francisco, California, subsidiary has completed construction and is currently commissioning the Gulf Wind windfarm project in Sarita, Texas. The $700m project will have 118 turbines for an annual maximum output expected to be 283.2 megawatts, enough to power more than 72,000 homes.

Chile/Peru joint venture
Chile’s Sigdo Koppers – through its subsidiary company Enaex – has formed a joint-venture company with the Peruvian firm Brescia. Sidgo Koppers owns 51% of the new company, which is called Nitratos. The company plans to invest $650m in Peru to develop a petrochemical project.

$2bn TransCanada pipeline
Canadian company TransCanada Corp is planning a $2bn pipeline that would ship natural gas from the Rockies to the Mid-west. The pathfinder pipeline would be 1083 kilometres long and would run from Colorado, through Wyoming, to North Dakota where it would link up with another pipeline. Completion of construction was originally projected for November 2010.

Manufacturing JV for Virginia
Areva, an international nuclear engineering company headquartered in France, and Northrup Grumman, a global defence and technology company, will partner to invest $363.4m in a joint venture to establish a new company in Newport News, Virginia. Areva Newport News LLC will manufacture equipment and pressure vessels for the nuclear industry, and create at least 540 new production and engineering jobs.

More than a decade ago, Professor Mancur Olson wrote, in the Rise and Decline of Nations, “success doesn’t depend on natural resources and location as much as on the degree of stupidity of the policies and institutions of the country”.

From its roots as a small tanning works in Michigan, Eagle Ottawa now has a 20% share of the global leather market and its competitive edge in the automotive sector is holding strong despite the downturn, says Lillie Guyer.

Jamaica’s deputy prime minister and minister of foreign affairs and foreign trade tells Lara Williams that with export commodity prices falling, the country is turning to its tourism and agro-processing sectors.

Taking the lead in campaigning against US protectionism, Canada is actively welcoming innovation and talent into the country. Minister of international trade Stockwell Day tells Courtney Fingar why Canada sees the bigger picture.

Toronto’s mayor is self-assured about the city’s banking system but advocates the importance of the $25bn government investment over the coming decade to support the city’s key industries, he tells Courtney Fingar.

Mexico’s best-kept secret, the state of Durango, has invested in infrastructure and can now provide a gateway between Asia and North America, as well as a highly educated and cost-effective labour force. Jason Mitchell reports.

The government of Nuevo León has laid plans to develop the state as a world-class player in the aerospace sector and its capital city Monterrey as an ‘international city of knowledge’. Jason Mitchell reports.

In a bid to encourage aircraft manufacturers to set up plants in Nuevo León, the state is investing heavily in its education sector to ensure it can offer a highly qualified resource pool. Jason Mitchell reports.

Nuevo León needs a first-tier aerospace company to reward its commitment to the sector and give it the international cache it craves, writes Jason Mitchell.

US companies delaying or cancelling investments in China claim fears of Chinese state protectionism.

The Indian government announced measures in February this year to enable larger inflows of FDI by easing the limit on investment a company can make.

Hong Kong and Tokyo have overtaken London in the global ranking of the world’s most expensive office locations.

Sumitomo plant in Vietnam
Japan’s Sumitomo Corporation has won the Vietnamese government’s approval to plan a thermal power project at the Van Phong zone in the southern coastal province of Khanh Hoa. The project will be developed jointly with Vietnam-based Bach Dang-Hanoi. It is estimated the 2640-megawatt plant will cost $3.8bn and will use coal imported from Australia and Indonesia. The plant is expected to be operational by 2014.

Philippines farm project
Philippines-based San Miguel and the Malaysia-based Kuok Group will launch the first phase of their $1bn farm venture in the Philippines during the first quarter of 2009. San Miguel, Asia’s biggest food conglomerate, and Kuok, the world’s largest listed palm-oil trader, will plant rice, corn and cassava in 18,518 hectares of land in Davao del Norte, one of the plantation areas identified by the government. The project is aiming to help the country achieve its food security goal.

Korta builds Indian facility
Spain’s Korta Group, which operates in the field of power transmission, has announced the inauguration of its first manufacturing facility in Bangalore, India. The facility, in Karnataka started operations last May but officially opened in 2009. The firm makes high-precision ball screws, which are used for machine tools in the aerospace, nuclear and engineering sectors.

Areva and Mitsubishi venture
French nuclear power engineering company Areva along with Mitsubishi Heavy Industries, Mitsubishi Materials, and their parent, Mitsubishi Corporation, are establishing a joint venture in the nuclear fuel fabrication business. The new company will be a fully fledged nuclear fuel supplier, integrating development, design, manufacturing and sales of nuclear fuel. The company, which will be established in first half of 2009, will create about 550 jobs and expects to achieve $537m in sales by 2020.

Two of Asia’s problems are reduced FDI inflows and too much trade export dependency on the US and Europe. In 2008, FDI inflows to Asia and Oceania decreased by 2.2% to $313.5bn.

Thailand is suffering from tumbling export receipts and a decline in business confidence and investment. Its minister of finance, Korn Chatikavanij, tells Simon Montlake how his fiscal policy will get the country through the global slowdown.

Standard Chartered has defied the doom in the banking industry by announcing an increase in profits for 2008. Chief executive Peter Sands tells Karina Robinson that Asia, which makes up the bulk of the bank’s profits, remains a key market despite the slowdown in the region.

China has set out a 12-year plan to pump life into the depressed Pearl River Delta, historically the heart of the country’s economy. Louise Do Rosario reports.

At the heart of the Pearl River Delta, Zhuhai boasts a growing skills and technology base and a welcoming environment for business, writes Christopher Cottrell.

Decision to move car production from Slovenia to France leads to accusations of protectionism from critics.

This year, Europe is ‘Summit Central’, with global leaders meeting to talk about tackling all the big issues. April included The London Summit 2009 for the G20, where the financial markets, the global financial and economic system and growth in the global economy were put on the table.

Lloyd’s of London insurer, Brit Insurance, is the latest company to leave the UK to establish its tax domicile overseas.

US industrial manufacturer Tomkins is to shed its first round of European jobs as the economic downturn hits sales.

Econcern solar project
Netherlands-based sustainable energy solutions company Econcern has announced plans to install 42 megawatts of solar capacity in Puglia, southern Italy, as part of Project Trullo. The project will start with the construction of seven one-megawatt solar parks early in 2009, with the parks expected to be in operation by 2010. Once complete, Project Trullo will add 15% to Italy’s 280MW of solar power generation capacity currently installed. Econcern will own 51% of shares in the holding company of Project Trullo and the Ampere Equity Fund has acquired the other 49%.

New Orange store in UK

France Telecom’s Orange UK has opened a new state-of-the-art store in York, UK. The store is one of the biggest in the UK and has created eight new jobs. This is part of the company’s expansion plan to open more than 60 new stores in 2009 and refurbish more than 100 others. The features of the flagship format stores include private consultation areas for customers with PCs and screens to connect people to the information they need, and modernised displays making it easier for the public to view the products on show.

Vorskla Hungary mill
Ukraine’s Vorskla Steel has finished the preparation phase for its new $926.65m rolling mill in Fenyeslitke, Hungary. The new mill will have an initial capacity of 3 million tonnes a year of hot rolled coil, later expanding to 5 million tonnes a year of hot rolled steel and 1 million tonnes a year of cold rolled steel. The mill will take two and half years to build and is scheduled to be in operation by the start of 2012.

$350m Loop5 mall in Germany
International shopping centre specialist Sonae Sierra and Paris-listed Fonciere Euris are developing the Loop5 mall in the southern German town of Weiterstadt. The shopping and leisure project has 56,500 square metres of gross rental area and involves an investment of $344.33m. It is expected to open in the autumn of 2009.

Logistics centre for Madrid
Norbert Dentressangle Gerposa, the Spanish subsidiary of French logistics company Norbert Dentressangle, is to open a 5000-square-metre logistics centre in San Fernando de Henares, Madrid, Spain. The centre is expected to open in September 2009 and will be used for cross-docking. The centre will allow the company to divide its coverage of Madrid into two zones. The San Fernando centre will serve the company’s clients in el Corredor del Henares and will also take over some of the services provided by its Leganés centre.

Auto insurer Admiral Group has successfully cultivated its business in the UK and is looking further afield to the rest of Europe and the US, yet it is cautious not to price itself out of the market, reports Lara Williams.

With one of the highest economic growth rates in Europe in 2008, Cyprus has not been so badly affected by the global downturn. Finance minister Charilaos Stavrakis tells Courtney Fingar how the island nation is faring.

Courtney Fingar canvasses a selection of Europe’s political leaders at the 2009 Mipim event in Cannes to find out how they are facing up to the challenges posed to attracting investment in the current economic climate.

The Bordeaux mayor is proud of the city’s advances in infrastructure and housing yet urges more national investment in education and innovation.

Brno’s strong academic network has cultivated the interest of investors from business and industry alike and the city’s mayor is keen to work on this leading edge.

Sustained investment in education and infrastructure have reshaped Budapest and turned it into a profitable city of highly qualified professionals, says its mayor.

Warsaw’s mayor is directing attention to the city’s sport and infrastructure sectors ahead of football’s Euro 2012 tournament, co-hosted by Poland.

Hungary rests on strong FDI foundations, yet must improve labour cost competitiveness and restructure its tax system, says its new prime minister.

Montenegro’s minister of economic development says that despite the downturn, fiscal and trade promotion initiatives are at the fore to keep investment flowing.

Uncertainty looms over the strength of even the strongest of the western Balkan states, Serbia and Croatia, as they inch towards EU accession. Tom Blass reports.

The Polish Treasury is to sell its interests in up to 800 industrial companies over the next four years in a move that it anticipates will strengthen its economic base. Tom Blass reports.

A rarity among major capital cities in that it does not aspire to be a financial services centre, Berlin is reaping the benefits of its role as a hub for the health industry, which has fared well during the recession. Lara Williams reports.

GlaxoSmithKline poised to take 10% share in Aspen as Western drug companies target emerging economies.

The first joint venture between a UK company and Iraq’s state-owned oil companies has been agreed.

GE, the multinational US technology and services conglomerate, and the Qatar Foundation, a state-run skills development organisation, have signed a partnership agreement for a jointly funded R&D venture.

BP $2bn Abu Dhabi plant

BP is developing plans for a $2bn hydrogen-fuelled power plant in Abu Dhabi in the United Arab Emirates which will generate 420 megawatts of electricity. The project is due to come online in 2013. The company will establish the plant through its UK subsidiary Hydrogen Energy, a joint venture between BP and Rio Tinto, and in collaboration with Masdar, part of state-owned Mubadala Development Company.

Al Noor red sea development
Development and construction group Al Noor Holding Investment has announced plans to build two cities in Yemen and Djibouti. Al Noor Cities – meaning ‘the cities of light’ – will be located on opposite sides of the Red Sea and will be linked by a bridge and rail network.

For most investors, Africa is virgin territory. This is despite the fact that it has a wealth of natural resources – from oil and gas through to copper, nickel, iron ore, diamonds and gold – and a great deal of fertile land as well as a young and dynamic population.

Syria’s finance minister tells Jules Stewart about his ambitions for the Damascus Stock Exchange, and the country’s goal to compete with Dubai and Bahrain as a financial services centre.

Hewlett-Packard is spreading its business across the Middle East, Mediterranean and Africa region in a move which it anticipates will stimulate competitiveness and economic growth, reports Lara Williams.

The United Arab Emirates has started to feel the pinch of recession. However, Dubai’s appeal as a world financial centre and Abu Dhabi’s immense wealth could protect it from the worst effects. Michael Imeson reports.

The trend for amalgamation within the pharmaceutical sector is creating ever bigger and stronger companies, writes Lara Williams.

A sophisticated biotechnology network has been growing in Madrid over the past decade and the city is being recognised as a European leader in the field.

Heading up fDi’s rankings for medical device manufacturing are Shanghai, New York and Istanbul – with Shanghai also topping the quality rankings for life sciences R&D.

Since its 2002 Bioscience Roadmap Arizona has become a highly specialised operating environment for scientific companies, writes Karen E Thuermer.

Google search monitoring is proving a useful way of tracking investor interest in investment destinations.

While real estate markets around the world slow to a crawl, investors are still seeking out opportunities in Abu Dhabi.

Amid bad press for call-centre outsourcing, insourcing and virtual centres are coming in vogue, writes Karen E Thuermer.

Barbados is a prime location for call centres with its welcoming business environment, strong technological expertise and well-developed infrastructure.

Multinationals from emerging economies are increasingly embarking on business in Europe, Sergey Filippov reports.

Business process outsourcing, which reached its peak In 2006, is in decline amid stories of low customer satisfaction.

In a special report, fDi Intelligence looks at the trends that have developed over the past five years and analyses how the findings can be put to work in 2009 and beyond.

While North America and western Europe still provide the bulk of FDI projects, it is Africa’s rise as a source region that stands out.

In 2008, Asia-Pacific remained the top location for FDI but Africa achieved the highest annual growth and Dubai edged forward to become the top destination city.

The US continued to dominate North American FDI, with California being the stellar state, but Canada put in an impressive performance in 2008. In Latin America, Mexico and Brazil remain the top two destination countries.

Argentina’s open local economy coupled with its well-established infrastructure and educated resource pool make it an ideal location for investment.

China is holding on to its prime position in Asia-Pacific, but India and Thailand also showed strong growth in 2008.

The top destinations in 2008 looked similar to 2007, with the UK and London leading in western Europe and Russia and Moscow in the rest of Europe.

In terms of FDI growth in 2008, the Middle East was second only to Africa. The UAE and Dubai were the top performers for the Middle East, while Nigeria and Cairo led the way in Africa.

Software and IT services, the most popular FDI sector with regards to project numbers for the past four years, was relegated to second spot in 2008 by financial services.

The bleak financial landscape and attacks from G-20 leaders over their ‘tax haven’ status have left offshore financial centres fighting to maintain their lucrative niche. Yuri Bender reports.

Madrid has raised its profile as a global financial centre in recent years on merit of its robust banking system, strong business network and cultural appeal.

Luke Peterson highlights the top trends to watch in the international investment disputes arena.

As the growth that FDI has experienced in recent years slows with the impact of the financial crisis, investors’ heads are turning towards developing economies, writes Dr Henry Loewendahl.