Title

California's Governance and its Impact on Foreign Direct Investment

Publication Year

2003

Keywords

Foreign Direct Investment, global business, California, foreign trade

Disciplines

Accounting | Business | International and Comparative Labor Relations | International Business

Abstract

The goal of this Honors Thesis was to identify issues seemingly relevant to decreased foreign direct investment (FDI) into California. This was initially accomplished through a scholarly literature review and a survey of four leading California newspapers. This stated goal was then accomplished by conducting thirteen live interviews with senior managers of foreign owned firms operating in California.

The thirteen live field interviews with senior managers of foreign owned firms operating in California were conducted between the months of January through March, 2004. Each interview lasted approximately one hour. Managers from foreign firms representing the nations of Australia, Belgium, France, Italy, Mexico, the Principality of Monaco, and the United Kingdom participated in the field interviews. The results of the interviews identified the following major issues, which deter foreign direct investment into California: high workers' compensation costs; the high wage rates of managers; high electricity costs; non-existent state promotion efforts; high corporate tax rates.

Based upon the results obtained from the field interviews, the literature review, and the periodical review, I have devised the following three reforms for the California state government: lower California's workers' compensation costs; do a cost-benefit analysis of California's "social-value" laws and regulations; establish a permanent and professional office within the state to deal with foreign investors.

Department 1 Awarding Honors Status

Business Administration

Department 2 Awarding Honors Status

Accounting

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