But in my view, with a good strategy and a good regulation system, a country can try to avoid them, maximizing the benefits of these investments. The first point for any country and Government would be a good strategy, a country strategic plan, looking 10-20 years ahead, which I see as a not so common thinking of Governments. With a good strategy it is possible to attract to a country or a region, companies linked to the potentialities of the region, with expertise, with guaranteed demand (international contracts), clean production systems, high technology (biotech/nanotech), and also to guarantee that units of research and development and part of the headquarters of this companies would be done at the country that is receiving this investment.

Let me at this point give the example of Brazil, a country that is having huge flows of international investments, major economic growth and income distribution, putting pressure on infrastructure and booming internal markets. Brazil will also have two major events that companies could be taking advantage of: World Soccer Cup in 2014 and Olympics in 2016. China knows what I am talking about (Beijing, 2008). A good strategy would be to attract international investment and companies immediately fitting with conditions of the country and opportunities. Just some ideas... these would be Spanish, American, Asian and other chains (like Melia, Hilton, Sheraton, Shangri-La) bringing and expanding their networks of hotels (business), investments on entertainment (arenas, parks, museums), Chinese wanting to produce energy and infrastructure logistics (roads, trains, airports), airline companies participation (now allowed to make part of 49 percent of local companies' shares) since it is one of the fastest growing markets, construction investors in order to build a second home for retired European people in all time summer Northeast Beaches of Brazil (six hour flight from Europe), and in Universities, a booming sector due to demand on education. There is also room for investments in food, like New Zealand milk farmers wanting to expand globally, Belgium chocolate companies, Australian/Uruguay sheep farmers and slaughterhouses. Just to point out some areas where a strategy would fit.

But all countries and respective Governments, when going to international markets to attract investments should do their homework, or the basics of the basics. These points would be to have the economy working well (growth, low inflation, interest rates, internal demand) good human resources and talents, reasonable infrastructure to be competitive, offer security, have a reasonable taxes and financial systems, trying to bring simplicity in order to facilitate management (get rid of bureaucracy, which is most of the times associated with corruption). A country also has to offer basic resources (energy, land, sun, water), good suppliers and distributors and Institutions (Judiciary System) that are trustworthy and are fast to solve problems and disputes. This homework, together with a good strategy, good regulation systems and simplicity will make the environment for international investments coming in and promoting sustainable development.

The author is professor of strategic planning and food chains at the School of Economics and Business, University of Sao Paulo, Brazil (www.favaneves.org) and international speaker.