World foreign direct investment（FDI）inflows rose to a record level of 1.8 trillion in 2007. Continued consolidation through cross-border mergers and acquisitions（M&As）contributed to the global surge in FDI. The increase in FDI largely reflected relatively high economic growth and strong corporate performance in many parts of the world. The global financial crisis had a limited impact on FDI flows in 2007，but began to bite in 2008. The slowdown in the world economy and the financial turmoil led to a liquidity crisis in money and debt markets in many developed countries. Global foreign direct investment（FDI）flows are expected to reach 1.6 trillion U.S. dollars in 2008，representing a 10 percent decline from the record level in 2007.