Prof George Batsakis

Countries differ in attracting foreign direct investment because governments prioritize political survival over economic growth. While FDI can boost growth, it may also shift power and increase inequality, making it politically risky. Evidence shows a U-shaped relationship: highly competitive democracies and stable autocracies attract more FDI, while intermediate systems attract less. Ultimately, FDI flows depend on political incentives, not just economic conditions.

Digital expansion abroad often reduces performance at first due to rising complexity and costs. Only after firms scale, learn, and integrate physical and digital operations do benefits emerge, turning early losses into long-term gains.

Rolex deliberately limits supply to preserve exclusivity, which creates excess demand that spills into secondary markets. There, prices rise far above retail, turning watches into investment-like assets. While scarcity strengthens brand status, much of the financial value is captured by resellers, and speculation increases market volatility.