Sunday, June 01, 2003
BTW, about that FII query no one answered -- Let me get more specific: Is FII very 'mobile'? Can a Foreign Instt investor pull out his investment in a very short time? And what financial form exactly does FII take?
Carl, I am definitely not an expert at this... but I will try to answer in a little bit more detail tomorrow. But yes, FIIs can, under ideal open economy standards, can pull in or out funds as easily as domestic investors. The reason this is still not an emphatic yes is because there are circumstances where it is not an easy for any one to feed in or draw out funds from a particular investment. For example, there are restrictions on directors on board or majority stake holders, which are there as a protection for small stake holders. Other than that, they can.
However, it is to be noted that in no country has this completely open model been implemented - not in the US, not in Europe....
Talking abt globalization, u know, a few years back, there were lots of screams in developing countries like India abt WTO and GATT being tools of economic imperialism. Well, now it looks like the boot is on the other foot... now, ever since the loss of jobs in US, there is seen a serious erosion of industrial base in the US. Many industries relocated to Mexico, and then, moved from there to China. Thus now, there is opposition to WTO inside US now. The queer turns the world takes! :)
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