Foreign Direct Investment Master Essay

Masters
Essay
Business
Pages 6 (1506 words)
Download 0
Foreign Direct Investment or FDI has rapidly increased during the last few decades as the overall network of countries and institutions favoring the FDI have expanded at great pace. (Mody & Ashoka, 2007). Foreign Direct Investment plays a critical role in the development of any country because of its potential impact on economic growth…

Introduction

However, despite its economic significance, on political grounds, FDI is a very controversial term as it is marred by controversies and political victimization especially in developing countries.
Iran is one such case where FDI has mostly remained a political issue despite the fact that Iran held one of the largest oil reserves in the world. Over the period of time, due to international sanctions, the process of Foreign Direct Investment has remained stagnant due to political hostility towards Iran. However, despite such situation, due to Iran's strategic oil & gas reserves, many countries such as China, Pakistan, India as well as other European countries made foreign direct investment into the country.
Jensen (2004) is of the view that institutional lending by supernatural institutions such as IMF has very complex and perplexing impacts on the economic performance of the countries due to institutional interference and policy dictations made by such institutions lower the flow of foreign direct investments into the developing countries.
Foreign Direct Investment has multiple consequences for the countries as it not only create an impact on the economic situation of the country but also have consequences o ...
Download paper
Not exactly what you need?

Related papers

Foreign Direct Investment (FDI)
Any capital venture, along with forecasts of return and profit, also comes with an array of risk and uncertainties. In the case of DFI the element of risk is comparatively higher as the investing entity might not be able to correctly forecast the political, economical, social, technological and legal environment of the country in which it plans to invest. There are various modes through which an…
Foreign direct investment
Lastly, the paper winds down with a thorough discussion of the political and economic reasons that inform governments’ need to intervene in the international trade. Foreign Direct Investment In every economy, the government of any given country defines the benchmark of political, social and economic leadership of that particular country. Government strategizes and sets legal mechanisms intended…
Japan Foreign Direct Investment
The behavior of exchange rates on the international capital market has a significant bearing on the quantity of capital resources that can be marshaled by multinational corporations to enable them carry out investments in the host countries.…
Foreign Direct Investment
In addition, the continuous change in technology also pushed for firms penetrating other markets. For most trans-national corporations (TNCs), the schemes associated with maximising foreign direct investment (FDI) are intricate. These processes are developed through time considering the environmental changes and other circumstantial elements. Logically, the methods in which FDI is maximised by…
Foreign Direct Investment Master Essay
However, despite its economic significance, on political grounds, FDI is a very controversial term as it is marred by controversies and political victimization especially in developing countries.…
Foreign Direct Investment Essay
(1) Over the same period, these countries also achieved a substantial increase in their exports, especially towards Western Europe.…
Foreign Direct Investment---Economics
What exactly are foreign direct investments, and why have they increased so steadily What factors make foreign direct investments such a popular global occurrence…