A Dearth of Animal Spirit in Foreign Direct Investment

The video discusses the changing landscape of globalization, focusing on foreign direct investment and the diversification of big companies. It highlights the impact of globalization on tech companies, with examples like Facebook and Google outsourcing development. The video also covers corporate behavior, emphasizing conservative strategies like share buybacks. Future trends in technology, such as self-driving cars and virtual reality, are explored, along with potential M&A activities. Finally, it addresses tax strategies used by companies and provides investment advice for equity markets.

What has been a significant trend in globalization over the past 15 to 20 years?

• Decrease in technology investments

• Diversification of big companies

• Reduction in domestic market growth

• Centralization of big companies

What is a major challenge in unleashing 'animal spirits' in the economy?

• High corporate taxes

• Excessive government regulations

• Lack of investment opportunities

• CEOs' reluctance to spend cash

Which area is expected to see significant M&A activity in the technology sector?

• Self-driving and electric cars

• Social media platforms

• Traditional manufacturing

• Retail technology

How do large corporations often manage their tax liabilities?

• By reducing employee numbers

• By using shell companies and tax havens

• By focusing on local markets

• By increasing domestic investments

What is the expected trend for the risk-on trade in the next 10 years?

• Focus on bonds

• Growth in cryptocurrency markets

• Shift towards equities

• Increase in real estate investments