Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction

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(Source: UNISDR, based on estimates by UNCTAD, 2012

UNCTAD (United Nations Conference on Trade and Development). 2012.,World Investment Report 2012: Towards a New Generation of Investment Policies., New York and Geneva.,. .
Figure 2.1    FDI projects by sector, 2005–2011ii 
In doing so, businesses have enhanced productivity and profitability by exploiting the comparative advantages of different geographies, such as in countries and cities that offer attractive labour costs and skills, easy access to export markets, good infrastructure, a stable economic and political environment, and many other factors. Although in many cases, low labour costs may have been the principal incentive driving production, distribution, research and development, sales and services to other locations, each business sector responds to a particular range of requirements and incentives.
As business investment becomes increasingly footloose and freed from spatial constraints, at the same time, it has become increasingly sensitive to the mix of comparative advantages internalised in each location. In other words, choosing the right location to invest becomes increasingly important to maintain and enhance competitiveness.
At the same time, as business investors scan the horizon in search of locations that can provide a competitive edge, competition between cities and countries to attract investment has become increasingly fierce. National and city governments promote their comparative advantage and attract investors by improving infrastructure, urban development and cultural landmarks.
The volume of foreign direct investment (FDI) provides an indication of the size of global capital flows. As Figure 2.1 highlights, FDI peaked at US$2.35 trillion in 2008, of which US$1.13 trillion went into services, including infrastructure; US$0.98 trillion into manufacturing; and US$0.23 trillion into primary activities such as mining, oil and gas and agriculture.
Globally, one of the results of these flows has been a substantial increase in the value of produced capital. In absolute terms, produced capital remains
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