Foreign Direct Investment - Assignment Example

Only on StudentShare

Extract of sample
Foreign Direct Investment

The effect of FDI on host economies has been the subject of extensive research. As pointed out by Hanson (2001), both theory and empirical evidence provide mixed results on the net welfare effect of inward FDI on recipient countries. The attitude towards inward Foreign Direct Investment (FDI) has changed considerably over the last couple of decades, as most countries have liberalized their policies to attract investments from foreign multinational corporations (MNCs). In fact FDI has proved to be resilient during financial crises. For instance, in East Asian countries, such investment was remarkably stable during the global financial crisis of 1997-98. This crisis mainly involved four basic problems (CRS Report, 1998):
Economists argue that the primary cause of the crisis was too much government intervention in economic activity, leading to misdirected and inefficient investments in both public and private projects. As an aftereffect of the crisis short-term capital inflows were viewed as unstable and thus dangerous; long-term capital movements were seen as stable and thus desirable. Therefore an emphasis was put on de-emphasizing short-term capital inflows and encouraging long-term capital inflows, especially FDI which was seen as directly enhancing domestic productive capabilities. ...Show more

Summary

In today's competitive economic environment Foreign Direct Investment (FDI) plays an extraordinary and growing role in global business. FDI is considered an investment to create or expand a permanent interest in a foreign enterprise. It provides a firm with newer markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing…
Author : mernser
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Foreign Direct Investment Assignment"
with a personal 20% discount.
Grab the best paper

Related Essays

Bioethics Assignment
New Report Calls for Decriminalization of Assisted Dying in Canada. Although the focus of the article is on voluntary euthanasia and assisted suicide in the Canadian socio-legal sphere, it has very relevant implications regarding the philosophical aspects of the issue in an international milieu as well.
5 pages (1250 words) Essay
Assignment
Sociology examines the relationship between an individual and society through different sociological theories. These theories, in fact, analyze cause and effect relationship between man and the society; man at the micro level and society at the macro level.
5 pages (1250 words) Essay
Assignment
Abolitionists see prostitution as compelled by multiple forms of pressure social power and not just sexism against women (Foucault, 2008). The two evident forms of social power are sex and money. Men are at higher ground and hold substantial and subordinated by weaker female status.
3 pages (750 words) Assignment
Ethic Assignment
It is argued that the government fears and distrust of mixed-race insurgence essentially intensified after the red river rebellion leading to increased segregation of the “half-breeds”. Mixed-race people were also seen to straddle the divide between colonized and colonizer and there were fears by many whites that this growing class would only serve to destabilize the racial hierarchies as they were seen to not always be easily catalogued by race - but would greatly undermine European supremacy as a result of posing real geographical implications.
9 pages (2250 words) Assignment
American Foreign Policy Essay
to send their troops. Peace-making, humanitarian help, international threats, all of these matters made the U.S. military be sent in various countries. Our interest in this essay will be to question ourselves in the decision making process of such intervention and of the realization of this involvement in foreign policy.
4 pages (1000 words) Essay
Foreign Direct Investment Article
After the initial years the home country and the local market cannot sustain growth of a company and the company must look to expand its business beyond national geographies. Expanding to other markets is no more an optional strategy for a firm- it is more of a necessity.
10 pages (2500 words) Article
Disparity in the prison system
A vast range of disparities characterizes the modern American society. Hatney & Voung (2009) define disparity as the probability of receiving a particular outcome that favors
4 pages (1000 words) Research Paper
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT