StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Essay example - Globalisation, Transnationals and Economic Policy

Only on StudentShare
Pages 6 (1506 words)
Foreign direct investment (FDI) is described the long-term investment by a foreign based direct investor in a business organization or enterprise residing in an economy that is not where the economy of the the foreign direct investor is located.
Basically, the relationship in a foreign direct investment supply scheme, consists of a investing parent enterprise and the foreign affiliate where money is invested in…

Extract of sample

Foreign direct investment has been very very important to the economic development in Central and Eastern Europe over the last decade. Basically, importance is marked by successful resource seeking there. Also, Market seeking is another important economic development in Central and Eastern Europe. Lastly, Efficiency seeking has improved the economic situation in Central and Eastern Europe.
Basically, importance is marked by successful resource seeking there. Some parent companies invests large capital resource in order to to acquire major factors of production that are more efficient than if the factors are obtained in its home country base. In fact, these scarce resources may not even be available in the home economy at all. These major factors include cheap labor and natural and resources. This exemplifies why Foreign Direct Investors set up shop into developing countries like the Asian third world countries. Specifically, some parent companies would go out of its way to seek cheap and hard to find natural resources in the Middle East and Africa. ...
Download paper
Not exactly what you need?

Related papers

Globalisation and Regionalisation
While there are undoubted benefits to that, not least of which is the accompanying expansion of each company's/economy's market for goods and services, the associate market and economic threats are almost too numerous to mention. As Juhasz (2002) asserts, globalisation is not simply a global economic order which has allowed for global integration but it is the imposition of the neo-liberal…
6 pages (1506 words)
Globalisation Theories
This equates to almost 175 million people; yet between 1990 and 2000 there was a 14% increased in the number of migrants globally. Of this figure 9% are refugees and 60% of them live are found in developing nations. (UN Population, 2002). Despite the more fluid borders and increased globalisation being felt worldwide these figures demonstrate that this mobility is reserved for the few, not the…
14 pages (3514 words)
Government Economic Policy
Governments main objectives of using this type of policies is to stimulate the aggregate demand, reduce inflation, improve a recession, collection of revenue to provide public goods, improve on market failure caused by externalities or even steer the economy to achieve higher growth.…
12 pages (3012 words)
Globalisation and Americanisation
The exponent of Marxists understand that world trade is the strategy of world division of labour is established under capitalism. From the point of potentially that division of labour can make easier every country to grow faster. We have to take advantage of that world division of labour to help the world's poor. Unfortunately, the division of labour imposed upon the less developed countries by…
6 pages (1506 words)
Globalisation Transationals and Economic Policy
136-137). Assuming that Boeing has a headstart, the likely outcome is that of Airbus deciding not to produce the aircraft, in favor of 0 loss, rather than to enter the market against Boeing, in which both firms would each incur losses amounting to -5. However, once Europe decides to subsidize Airbus, the outcome of the game shifts in favor of Airbus, and it can decide to go head-on with Boeing in…
12 pages (3012 words)
Globalisation and International Relations
The study of international relations as a theory is based on a model that helps in the analysis of international relations. However the theories of international relations can take different approaches based on constructivist, liberalist or realist perspectives. Liberalism would emphasise only the advantages of globalisation arguing for the need of open and free market policy. Some economists and…
4 pages (1004 words)