International investments
Foreign investments mean that someone from abroad buys a company or part of a company in a country. This is normal, and most of the time unproblematic. In fact, a range of benefits may come from foreign investments, both for the company in question and for the country in which it is located.
Who, then, are buying companies in other countries? Normally, it is other, often multinational, companies that are privately owned. However, as of late, we see that some of these companies indirectly or directly also represent the interests of other states. A worry is therefore that foreign investments and the buying of companies can be used as a power-political instrument in the relations between states. This worry is partly a result of changing patterns of investments flows, where China, Russia and Gulf States have become more significant actors.
Usually, investments from such countries are also unproblematic but in the worst-case scenario, such investments can be used by other states as a basis for espionage, or as a means to gain leverage and exert political pressure on other countries.
An increasingly important question is therefore how liberal open societies can reap the benefits of open economies, but also protect their legitimate security interests. Where and how should we draw the borders between what is acceptable and normal, and the few cases where foreign investments may be a risk to society? Should a country decide this alone, or do we need international cooperation concerning the rules for screening foreign investments? If we can stop some kinds of investments, is there a danger that this can be abused for other purposes beyond societal security?
Researchers at Nupi therefore work to better understand the relationship between the benefits of foreign investments and how to best protect legitimate national security concerns.
News about international investments
-
NUPI replaces NRK P2's 'Ekko' this week
7 Dec 2020NUPI has produced ten hours of high quality radio about foreign policy and international relations. The programs will air on NRK P2 during week 50, Monday to Friday from 9.00 to 11.00. Tune in!
-
Norwegians adapting to a changing world
17 Jun 2020The world as we have come to know it is changing. How do Norwegians respond to these changes? What are their views of Norwegian foreign policy?
-
Free trade agreements increasingly important for Norway
29 Jan 2020The EEA Agreement is Norway’s most significant free trade agreement by far. However, free trade agreements with other countries are becoming increasingly important, notes NUPI Senior Research Fellow Hege Medin.
Publications about international investments
-
Publication
: Op-ed
Hvem eier i Norge?
We have checked how good the overview of foreign ownership in Norway is. We found some shortages. -
Publication
: Academic article
Why do firms import via merchants in entrepôt countries rather than directly from the source?
2021An increasing share of world trade happens indirectly via merchants in third countries, so-called entrepôts. This article uses an exhaustive and highly disaggregated dataset for Norwegian firms’ import transactions to study the motives for importing through such merchants rather than directly from the... -
Publication
: Report
Mekanismer for screening av utenlandske investeringer. Oversikt over et utvalg land
Etter tusenårsskiftet har åpne økonomier i økende takt satt i gang prosesser for å vurdere risikoen av utenlandsinvesteringer. Bakgrunnen for dette er økende grad av investeringer fra mindre transparente økonomier, frykt for svekket konkurranse blant internasjonale aktører, samt teknologiske endringer...
Research projects about international investments
-
Research project
Consequences of Investments for National Security (COINS)
2019 - 2023 (Ongoing)How can liberal open societies reap the benefits of open economies, but at the same time protect their legitimate security interests? In the project “Consequences of Investments for National Security”...