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The global pattern of foreign direct investment in the years 2000-2011 - Essay Example
Finance & Accounting
Pages 12 (3012 words)
INTRODUCTION Foreign direct investment (FDI) is the amount of investment made by the investors in the foreign business ventures and enterprises. In reference to a particular country, foreign direct investment (FDI) is the amount of money invested in different projects of the country by the foreign investors (Asiedu, 2002)…
Foreign Direct Investment (FDI) is perceived as one of the important measures of increasing economic globalization. As because of increasing globalization and international trade, transnational corporations (TNCs) are able to invest in different overseas projects and shift their operations to different regions of the world (Globerman, & Shapiro, 2003). It is important to understand and analyze the concept of the foreign direct investment as it is directly related with the globalization in the today’s world (Noorbakhsh, Paloni, & Youssef, 2001). Because of increasing globalization and international trade, more and more foreign investors are investing their money in different projects overseas. It is important to notice that overall foreign direct investment (FDI) increased to around $ 33 billion in the year 2008 as compared to $ 5 billion in the year 2000 (UNCTAD, 2010). However, there was sharp decline in global foreign direct investment (FDI) in the year 2009 to around $ 28 billion. This was because of the global economic recession. ...
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