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FOM faculty publish paper through Canadian Defence and Foreign Affairs Institute

In a new Policy Paper from the Canadian Defence and Foreign Affairs Institute, Hugh Stephens, a Fellow of the Canadian Defence & Foreign Affairs Institute and RRU associate faculty  and Prof. Charles Krusekopf, stipulate that "while Canada ponders whether, and on what conditions, to approve CNOOC’s bid for Nexen Inc., it might consider the consequences of getting the decision wrong."

The authors caution that "a failure to encourage state-owned enterprises (SOEs) like CNOOC to invest in the risk (and returns) of resource development – while simultaneously setting clear and transparent guidelines for such investment – can have a significant negative economic impact and send mixed signals not only to Chinese investors, but also to other players in the market."

To better illustrate this point the paper uses Mongolia as a case in point, as well as a cautionary tale.

Read the full paper here.

The paper was also shared via IPolitics and several blogs.