Global flows of foreign direct investment will this year exceed $1 trillion for the first time since 2000, driven by a mergers and acquisitions boom in which private equity funds are playing an increasingly important role, the United Nations Conference on Trade and Development said Monday.

In its annual report on FDI, the U.N. agency added that while there have been some signs of rising hostility to foreign investment - most notably in Latin America - most legislative changes in recent years have been positive.

UNCTAD said global inflows of foreign direct investment rose 29% in 2005 to reach $916 billion, following a 27% increase in 2004. But inflows remained far below the 2000 peak of $1.4 trillion, which marked the top of the last big M&A boom.

Read entire article . . .