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Is Foreign Investment Good or Bad for USA? - Research Paper Example
Author : kaelakreiger
Finance & Accounting
Pages 5 (1255 words)
Introduction: Foreign Direct Investment can prove to be an asset for both the companies and the economy of the country. FDI is generally an investment made by a foreign company in another country of a different origin…
Due to rapid growth in FDIs all around the world, much work has been done on determining the effects of FDIs on USA economy. There have been increasing concerns about these foreign investments and these have been criticized on many grounds by the critics as they believe there are many disadvantages of these investments like reduction in employment in USA, reduced or inhibited technological advancements, increased trade deficits. Some even argued that increasing presence globally can be a threat to national security and might make the country compromise on national sovereignty. On the other hand many discusses about the advantage that USA has obtained from these investments which mainly revolves around the general presumption of benefits and favors of free markets. (Graham, Edward M, and Paul R. Krugman) Foreign investments can be both inwards and outwards. ...