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
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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?
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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.
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What does China really want in the Middle East?
16 Dec 2019In a recent article, NUPI research fellow Henrik S. Hiim and Stig Stenslie aim to find an answer.
Publications about international investments
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Publication
: Report
Brunei Darussalam: How to Build an Investment Climate for Renewable Energy?
Brunei Darussalam has yet to make major progress in renewable energy and become an attractive destination for investors. Only 0.05% of Brunei’s electricity came from renewable energy sources, while 99.95% was based on fossil fuels. In 2014, the country set a renewable energy target of 10% in the power... -
Publication
: Popular scientific article
Impact of Digital Technologies and the Fourth Industrial Revolution on Trade In Services
Digital technologies are cutting trade costs for services, turning more services from non-tradables into tradables, and putting trade in services on a stronger relative growth path than trade in goods. Digital enablement of services depends on inputs of cross-border data flows, which are themselves growing... -
Publication
: Feature article
Holdninger til utenlandske investeringer fra Kina i de nordiske land
How does the Nordic public view foreign investments? Does the country of origin for such investments matter for the public? Would the public be more critical of investments into certain sectors of the economy, whilst being less critical to foreign investments in others? This essay presents the results...
Research projects about international investments
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Foto: Peter Ashley/Creative Commons/CC BY 2.0
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”...