Benefits Of Foreign Direct Investment

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1. Benefits Of Foreign Direct Investment
Nisha Bhikha
Dr. Tamara Black
WRIT 340
29 March 2016
Benefits of Foreign Direct Investment for Nations in Sub–Saharan Africa
Executive Summary
As developing nations continue to expand their economic systems and find their place within the
global market, the practice of Foreign Direct Investment (FDI) has become increasingly common. In
2013, developing nations received nearly 800 billion dollars of FDI, accounting for 54% of total
global inflows (UNCTAD 2). Though many have elected to adopt a cautious approach, Foreign
Direct Investment has proven to have a multitude of positive effects on developing nations'
collective labor rights and productivity. For these reasons, the Committee for Economic
Development in Sub–Saharan Africa should ... Show more content on Helpwriting.net ...
This, simply put, is false. Nations with large inflows of foreign direct investment still have a hold
over their nation, and are allowed to set the terms and conditions of foreign investment. Though
governments may have to enforce policies to make their nations more enticing to FDI, this decision
remains solely theirs. Sovereignty remains in the hands of leaders of the state, not leaders of
corporations. The inclusion of Foreign Investment into a nation's economy does not preclude it from
continuing its tradition of government, but rather allows them to collaborate with outside
organizations to help aid the creation and institution of a more stable state politically, socially, and
economically.
Context and Importance
For many nations with weaker economic systems, Foreign Direct Investment can seem like a
daunting, and perhaps even unnecessary facet of day–to–day economic happenings. In the face of
decolonization in the 1960s, many formerly colonized nations subscribed to two separate economic
models: Import–Substituting Industrialization (ISI) or Export–Oriented Industrialization (EOI).
Import–Substituting Industrialization relies upon heavy taxation of agriculture, and a movement
towards autarky that hinges on the production of everything that may be imported within the nation.
The thinking behind ISI suggests that government investment into all industries of a developing
nation
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3. Foreign Direct Investment in Vietnam Essay
Foreign Direct Investment in Vietnam There is no dout that foreign direct investment (FDI) plays a
very significant role in economic growth, according to experiences of new industrial countries in
Asia. Over a decade of opening for FDI, we could realize that the more FDI inflows pour into our
country the more we benefit. In fact, FDI has contributed a great proportion to fulfill targets on
socio–economic development plan and has been one of the most important external sources of
Vietnam on the process of industrializing and modernizing the country. Statistics shows that there
was a sharp rise in FDI commitments in the period of 1998–1995. The number of investment
projects go up at average 50 percent each year untill the end of ... Show more content on
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In the late of 80s and the early of 90s (1988––1993), Vietnam still be hampered by United States's
embargo policy on its weak economy. Though, foreign investors were very eager to invest in
Vietnamese market promising numerous business opportunities because Vietnam has many
advantages such as being a new market with big population and cheap price of labor; having rich
natural resources, particularly oils, favorable geographical location and huge agricultural potential.
Statistics shows that FDI commitments coming to Vietnam increased notably from 1988 to 1996,
hitted the top in 1996 with US$ 8633 million and decreased sharply since 1997. Most of these
commitments were made during 1995–1996. Several large construction projects were approved
during this period of time, and this pushed up average project size to US$ 20.5 million, compared to
US$ 13.3 million during 1988–1994. We can also realize that proportion of disbursements in
comparison with commitments is low in the early of 90s. (See chart below) Sources: UNDP B. THE
CAUSES OF DECLINE IN FDI IN VIETNAM IN RECENT YEARS There are numerous factors
causing the sharp decrease in FDI since 1997 up to now. In my opinion, there are 2 main kinds of
causes: direct causes and indirect causes. The direct cause is the Asian financial crisis "booming" in
July 1997. Yet, the critical cause we should consider strictly is indirect one that was hidden under
annual increase
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5. Foreign Direct Investment ( Fdi )
CHAPTER 1 INTRODUCTION 1.1 BACKGROUND OF THE STUDY Foreign Direct Investment
(FDI) is one of the biggest tools for international economic integrations. Firms view overseas
expansion as a necessary step to achieve a more effective access in the markets where they presently
have low representation as stated by Tyu T. and Zhang M. M. (2007). In order to take advantage of
the aggregate economies offered by the blooming innovative environment in that particular region,
firms of course will invest heavily in an advantaged location to compete with other countries.
According to Changwatchai P. (2010), FDI has become more important for the economic growth
and development of many countries. FDI can deliver capital, a means to pursue global strategic
objectives, and a means to access technology and skills to the host country. Attracting FDI is an
important issue of concern to many developing nations. According to Sanderatne N. (2011), there
are many conditions that have to be put in place to attract FDI. It is important to ensure an attractive
investment climate. Consistent macroeconomic policies, good governance, economic stability,
guarantee of property rights, rule of law and absence of corruption are among the conditions
required to attract FDI. Consistency and predictability in economic policies and political stability are
preconditions to attract FDI. FDI is one of the three types of foreign investment instead of portfolio
investment and foreign loans. These FDI in
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7. An Investigation Of Foreign Direct Investment
An Investigation of Foreign Direct Investment in Indian Banking Sector L.Kannan
Foreign Direct Investment (FDI) plays an important role in the economic development of a country.
The Indian banking system is radically different from those common in other countries due to its
unique geographic, social and economic characteristics. India has a huge population, different
cultures in different parts of the country and also disparities in income. In this research paper discuss
about the role of the Foreign Direct Investment in the Indian Banking Sector and the Rules and
Regulations for Foreign Direct Investment in India. To encourage the saving habits ... Show more
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Also in India the population spread among rural and urban areas is also skewed in the favour of
urban areas. All these features reflect in the volume and structure of the Indian banking system.
Further in order to fulfill the requirements to the government policy it has been subjected to
different nationalization schemes at different times. RBI credit policies form the guidelines for
banks in India. Since they had to satisfy the domestic obligations, the banks have so far been
confined within the Indian borders. Banking in India originated in the last decades of the 18th
century. The first banks were The General Bank of India, which started in 1786, and Bank of
Hindustan, which started in 1770; both are now defunct. The oldest bank in existence in India is the
State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal.
Foreign Direct Investment as seen as a main source of non–debt inflows and is increasing being
required as a vehicle for technology flows and as a means of attaining competitive efficiency by
creating a meaningful network of global interconnections. FDI plays a critical role in the economy
since it does not only give opportunities to host countries to enhance their economic development
but also opens new vistas to home countries to optimize their earnings by employing their ideal
resources.
In India, FDI is considered as a
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9. Negative Consequences Of Foreign Direct Investment
NAFTA supporters, on the other hand, argue that foreign direct investment in Mexico has been
higher after NAFTA, but it must be recognised that it also has had a number of negative
consequences. One of the most important negative consequences is that the flow of foreign
investment has been focused on the creation of companies producing goods or services directly
exported to the USA (maquiladoras) (Ruiz 2015: 44). Investment flows have been generated
primarily to produce goods or services for the USA; this type of foreign direct investment is
vertically integrated, it is fuelled by low trade costs given the unskilled and cheap workforce, it is a
type of investment in which developed countries use developing countries as a re–export platform or
as leverage in the search for new markets, creating economic dependency relationships (Calderon
and Hernandez 2011: 114–116). Another consequence is that domestic industry has deteriorated by
imported inputs and competition from foreign direct investment, due to the displacement of local
companies that were unable to compete with multinational corporations, and thus generating job
loss. Another important negative consequence to consider is that the money of foreign investment
has led directly to the wealthiest regions of Mexico, since they are the ones who have the education,
skilled labour, transport infrastructure and necessary communications to facilitate product export to
the USA, which has intensified disparities and inequalities
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11. U.s. Investment Abroad And Foreign Direct Investment
Abstract
With recent technology advancements and globalization process, there exists more cases of domestic
capital invested into foreign domains to exploit foreign markets. This paper aims to study the effect
of U.S. direct investment abroad, and foreign direct investment (FDI) in the U.S. on the
unemployment rate in U.S. A dummy variable will be tailored to explain the impact of the 2008
financial crisis and its spill–over effect in to 2009, in relation to the overall quarterly time series data
from 1994 to 2014. Multiple linear regression results confirm while both foreign direct investments
and U.S. investments abroad are critical components in the model, FDI is comparatively more
important determining unemployment rate.
Introduction
The Globalization process have provided many benefits for both developed countries and
developing countries. With recent breakdowns of economic barriers for countries to have easy
access of foreign investment capital, developed countries such as the U.S. have the opportunity to
explore immature markets, while developing countries will receive the financial resources, advanced
technology, and managerial skills necessary for a faster pace of economic development. Foreign
direct investment by multinational corporations is the action of obtaining controlling equity share of
a firm in a foreign country. There has been many discussions about the role of FDI in affecting a
country's unemployment rate and economic growth. Of which many believed
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13. Foreign Direct Investment Fdi Policy
Foreign direct investment ("FDI") in India is regulated under the Foreign Exchange Management
Act 1999 ("FEMA"). The Department of Industrial Policy and Promotion ("DIPP"), Ministry of
Commerce and Industry, Government of India makes policy pronouncements on FDI through Press
Notes and Press Releases which are notified by the Reserve Bank of India ("RBI") as amendments
to Foreign Exchange Management (Transfer or Issue of Security by Persons Resident Outside India)
Regulations, 2000. The consolidated FDI policy issued by the DIPP ("FDI Policy") lays down two
entry routes for investment: Automatic Route where foreign investments do not require prior
approval of the government and Government / Approval Route where prior approval of the ... Show
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In this case the online platform's clients are various sellers who own the inventory of goods and
advertise their goods on the online platform. The ultimate sale of the goods is completed between
the third party seller and the end consumer. There are other innovative models which are being
adopted to bring in investments into companies engaged in e–commerce or companies which
directly or indirectly collaborate with e–commerce businesses such as 1. Investing into companies
which are engaged into wholesale trading which owns inventory and maintains online b2b platform.
2. Investing into companies providing technology services (where 100% FDI is allowed under the
automatic route) which provide technology related services on an arm's length basis to e–commerce
platforms. While considering any such models, it is important to be in compliance with the FDI
Policy. Other conditions 1.) The digital and electronic network will include television channels,
computers and other internet application based networks used in automated manner such as
webpages, extranets, mobile phones, etc. 2.) Market place e–commerce entity can have transactions
with sellers registered on its platform on B2B basis. 3.) E–commerce may provide support services
to sellers in respect of warehousing, logistics, order fulfillment, call centre, payment collection and
other services. 4.) E–commerce entity will not exercise
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15. Foreign Direct Investment By Multinational Corporations
Developing countries lag behind the rest of the world in many aspects of life including economy,
education, and welfare. Achieving progress in any of these three areas is important in getting these
countries on par or at least closer to the standard of living present in developed nations. Numerous
of hypotheses have been posed to tackle and address these issues. This paper examines the aspect of
improving the economy and whether or not foreign direct investment by multinational corporations
would benefit developing countries. Some may argue, including the renowned artist Frida Kahlo that
foreign direct investments may actually lead to a decline in culture and exploitation. However, this
paper argues that the economy in developing countries could be significantly improved by properly
introducing foreign direct investment by multinational corporations. Foreign direct investment (FDI)
made by multinational corporations would spur the economy in developing countries which in turn
would lay the groundwork for improvements in other important aspects including education and
welfare without a decline in culture and exploitation of citizens.
Developing countries are stuck in a cycle of poverty that can't be broken from within the domestic
economy due to an insufficient supply of investment available in these countries to raise the
productivity and income levels of workers. The only way to break the cycle of poverty is through
investment from multinational corporations. FDI is an
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17. Foreign Direct Investment ( Fdi ) Essay
Foreign Direct Investment (FDI) is defined as an investment made by individuals in one country in
business interests in another country, in the form of either establishing business operations or
acquiring business assets in the other country, such as ownership or controlling interest in a foreign
company. The key feature of foreign direct investment is that it is an investment that establishes
either a majority of control or an influence on the decision making of a business. Based on the graph
below, Chile has a foreign direct investment growth of over 18% of GDP growth based on the years
of 2010 and 2012. Since 2010, around 30% of the increase is based on the average investment of
FDI. Based on Santander Banks, companies in Chile with overseas shareholders pay wages that are
on average 130% higher than locally–owned companies of the same size in the same sector. The
countries in 2013 with the highest foreign direct investments in Chile are the United States with 16.7
%, the Netherlands with 14.8%, Spain with 10.4%, Canada with 5.1%, the UK with 4.3 %, Japan
with 3.8 % , Bermuda with 2.9 %, Brazil with 2.7 % , and Luxembourg with a low of 2.2%. Chile's
main investments are mining 44.9 %, services 17.6 %, electricity, gas and water 10.2 %,
manufacturing 4.7 %, transportation and communications 3.4 %, trade 1.2%, construction 1.0 % and
agriculture and fishing 0.2%.
Chile's old FDI rule was the DL600, the new FDI rule is the IED Act, which became effective on
January 1, 2016.
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19. Foreign Direct Investment ( Fdi )
Foreign Direct Investment (FDI) is a major or key element in international economic integration.
Foreign Direct Investment creates a stable, direct and long lasting connections between economies.
It therefore encourages the transfer of technology know how between countries and allow the host
country to promote its products more widely in international markets. It is also and additional source
of funding for investments and it can also be an important form of development. Foreign Direct
Investment is an investment in a business firm by an investor from another country in which the
foreign investor has control or a significant degree of influence over the company or firm. The
Organization of Economic Cooperation and Cooperation ... Show more content on Helpwriting.net
...
High inflow of foreign investment is needed for a country to gain a high sustainable economic
growth. For an economy to grow by 7 to 8 percent a year, there is a need to invest about 30 to 40
percent of GDP. FDI is good and strong developmental equipment that contributes to the economic
growth of host country. This growth are contributed by the high increase of capital stocks in the host
country, increase in productivity and availability or creating of new jobs. These new creation
provided by FDI also leads to productivity and knowledge spillover on the domestic firm.
Productivity and knowledge spillover increases when the productivity of the local firm is gained
through the leading edge of technologies employed by the foreign companies. However, there is
some negative impact on this because the foreign firm or investor has the ability to draw the demand
away from the local firm because of the price of reduction to their new different and innovative
products or goods and due to this, the local firm's productiveness will decrease because of the
market run down by the foreign firm or investor. The ability of a local firm to take the spillover
benefits is dependent on how the local firm takes in the foreign firm skills and technological know
how. Employment: The employment effect of FDI on the host country is basic
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21. Foreign Direct Investment Into Pakistan
Title:
Causes of Foreign direct investment into Pakistan.
Aim and objectives:
The dissertation topic will focus on the importance of foreign direct investment into Pakistan's
Economy and will also focus around the causes of foreign direct investment. The report will look
into three different perspectives such as, the effects on FDI pre and post 9/11, investment in different
sectors of industry and the importance of investing countries in terms of contributing towards
developing Pakistan's infrastructure or helping financially to fight the 'War against terror'. Moreover,
the report also provides an insight to what can be done to improve the inflow of FDI into Pakistan.
Background of Pakistan's economy and FDI: Since the independence in 1947 the economy of
Pakistan has emerged as a semi–industrialized economy and is mainly based on textile, agriculture
and food production. The textile industry contributes around 9% to the country's gross domestic
product (khurram baig, 2013). However, since the start of 2008 the country as a whole has struggled
to gain the confidence of many foreign and local investors due to instability and security concerns
and the country is struggling to gain back the confidence ever since. Although, after 2012 an
increase in the FDI was seen due to improvement in the tertiary sector, this was n mainly due to an
increase in spending power and confidence shown by the local consumers (The World Bank).
Foreign direct investment refers to long term
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23. Challenges and Advantages of Foreign Direct Investment
Challenges and Advantages of Foreign Direct Investment
Running Head: Challenges and Advantages of Foreign Direct Investment
Challenges and Advantages of Foreign Direct Investment
Introduction
Brinker International:
Brinker International, Inc. is an American Multinational Enterprise engaged in providing all types of
hospitality and casual dining restaurant services. Currently, Brinker International is operating in 32
countries with over 1,579 restaurants and almost 100,000 team members. It serves a minimum of
one million customers per day which makes it stand among the largest hospitality enterprises of the
world. It was founded by Larry Lavine in 1975 under the brand name of 'Chili's Grill & Bar' and
renamed by Norman E. Brinker in 1991 as 'Brinker International'. It is headquartered in Dallas,
Texas while operates around the Globe through ownership and franchising agreements (Brinker,
2011). The company operates with three major restaurant brands: Chili's Grill & Bar, Maggiano's
Little Italy, and Romano's Macaroni Grill. Since its emergence as a quality brand in the hospitality
industry, Brinker International has won a number of awards and recognitions from renowned
national and international councils, journals, and magazines (Brinker, 2012).
Proposed Foreign Direct Investment in Italy:
As a part of its international expansion strategy, Brinker International can expand its business
operations into new attractive markets of the world. This paper gives a proposal to
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25. Foreign Direct Investment ( Fdi )
CHAPTER 1
INTRODUCTION
1.1 RESEARCH BACKGROUND
Research on FDI has been one of the most popular topics among the scholars in finance and
economics field. In order to start the study, the definition of FDI should be clarified first.
1.1.1 Definition of Foreign Direct Investment (FDI)
Foreign Direct Investment, popularly known by its acronym FDI, is a particular type of foreign
capital, as opposed to domestic investment. In general, FDI is refers as a long–term investment by a
foreign direct investor in an enterprise resident in an economy other than that in which the foreign
direct investor is based. According to Fu (2000), he argues that it does not include loan capital
provided by international organizations, foreign ... Show more content on Helpwriting.net ...
The International Monetary Fund (1977) defines FDI as investment that is made to acquire a lasting
interest in an enterprise operating in an economy other than that of the investor, the investor's
purpose being to have an effective voice in the management of the enterprise.
While Organization for Economic Cooperation and Development (OECD)'s benchmark definition of
FDI identifies FDI's objective is to obtain a lasting interest by a resident entity ("direct investor") in
one economy other than that of the investor ("direct investment enterprise"). The lasting interest
implies the existence of a long–term relationship between the direct investor and the enterprise and a
significant degree of influence on the management of the enterprise. Direct investment involves both
the initial transaction between the two entities and all subsequent capital transactions between them
and among affiliated enterprise; both incorporated and unincorporated (OECD, 1996).
Thus, in line with the definition of IMF and OECD, Malaysia has chosen an arbitrary value, holding
of at least 10 per cent of the total equity in a resident company by a non–resident direct investor
(www.investopedia.com, 2014).
1.1.2 Overview of Foreign Direct Investment in Malaysia

26. During the last three decades, the world economy has increasingly integrated with foreign direct
investment (FDI). FDI itself has become a particularly significant driving force
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28. Advantages And Disadvantages Of Foreign Direct Investment
In all countries that are concerned to trade relations, they follow a trade policy which defines
standards, goals, rules and regulations between two or more countries. These policies are particular
to each country and are formulated by its public officials. A country's trade policy includes taxes
imposed on import and export, examination regulations, and tariffs. "Their aim is to boost the
nation's international trade" (Azzam, H., T. 2002). One of these several trade policies is the foreign
direct investment that encounters an investment in an industry by a shareholder from another
country, for which the foreign investor has control over the company purchase.
"Let's talk about Investment from one country into another normally by companies rather than
governments that involve establishing operations or acquiring tangible assets, including stakes in
other businesses. Foreign direct investment is well–known from group of foreign investment by the
factor of control. FDI is a transfer of ownership; it usually involves the transfer of factors matching
to capital, including management, technology and organizational skills. (D. A. MacDougall G.
1960.). Businesses that make foreign direct investments are often called multinational corporations
may make a direct investment by creating a new foreign enterprise, or by the acquisition of a foreign
firm. In the framework of foreign direct investment, advantages and disadvantages are one way or
another kind of perspective. A Foreign
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30. Economic Growth And Foreign Direct Investment
Economic Growth and Foreign Direct Investment (FDI)
Introduction:
Economic growth and benefits of foreign direct investment depend on factors such as the industry
and the learning curve. Foreign direct investment (FDI) is, "a controlling ownership in a business
enterprise in one country by an entity based in another country." [1] There are three strategic types
of FDI: Horizontal FDI, Platform FDI, and Vertical FDI. The horizontal FDI is, "when a firms
duplicates its home country–based activates at the same value chain in a host country through FDI.
Platform FDI occurs when "foreign direct investment from a source country into a destination
country for the purpose of exporting to a third country. Vertical FDI "takes place when a firm
through FDI moves upstream or downstream in different value chains i.e., when firms perform
value–adding activities stage by stage in a vertical fashion in a host country."[1] It is a common
belief that FDI increases local growth (economic development); and the benefits come from transfer
for technology and management know–how, introduction of new processes, and employee training.
[2]
Analyzing various researches on the benefits of the FDI in different industry such as the
manufacturing and service, it appears that the benefits vary significantly between the two. The main
case for FDI (host country) is that it can positively affect the development of the host country
because of the direct financing it supplies and the technology and management
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32. Foreign Direct Investment And Developing Countries
Foreign direct investment plays a critical role in financing the development of emerging economies.
Foreign direct investment benefits countries through a transfer of resources in the form of capital,
technology, management of resources, creation of work opportunities, and a positive impact on the
country's balance sheet, typically through an increase in export volumes. These benefits are essential
for sustainable growth and development of a country, especially for developing countries. Despite
the important role that foreign direct investment plays in helping to achieve the Sustainable
Development Goals, many developing countries face challenges in accessing this source.
Many countries that do have access to foreign direct investment are only given access in specific
areas of business or of the country. Other countries, often those that needs it most, are overlooked by
investors, missing out on this source of finance entirely. In Indonesia, eighty percent of foreign
direct investment are confined to Java where the country's capital is. Geographically focused
approach of foreign direct investment prevents investors from capturing the full opportunity offered
by developing countries. Resources need to be allocated to match the shifting distribution of each
country's growth. Understanding the priorities of central and local governments as well as
determining how or where these align with business priorities is a tremendous challenge.
The President of Indonesia, Joko Widodo,
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34. Foreign Direct Investment And Its Impact On An Economy
Foreign Direct Investment in Ireland Introduction Foreign Direct Investment (FDI) has been
considered important for the growth of a country. When the individuals or companies from a country
invest in another country, it is regarded as FDI. FDI not only strengthens the manufacturing base of
the host country but also contributes to the strengthening of the economic outlook. FDI can be seen
as an investment that leads directly to job creation in an economy. The unemployment rate decreases
due to FDI, which leads to stability in economic, social and political spheres. This leads to
establishing the notion that FDI is necessary for a country because it helps in strengthening the
economy of a particular country. Ireland has been benefitted by ... Show more content on
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The investment plans would be aimed at Asian economies because of the positive growth seen in the
Asian markets. As per an estimate, four–fifth of all the investment has been flowing towards less–
developed countries in Asia. In 1996, China attracted 38% of the total investment flows from all
over the world (Moran, 15). But it cannot be said that only the Asian economies have the potential to
attract FDI because of their cheap labor. The capacity to attract investors relies heavily on a
country's prospects. Many of the developed countries have attracted more FDI by improving their
prospects. Ireland has been ahead of its European counterparts in this matter. The country has been
attracting a considerable amount of FDI every year from its allies. The economic cooperation
between Ireland and the Unites States (U.S) has strengthened over the time. Ireland and FDI from
the U.S According to a report, Ireland has been kept on the priority list by the U.S firms because of
the country's favorable prospects. The U.S firms have shown an increasing interest in Ireland
because of its business–friendly policies. It has been estimated that more than $277 billion have
been invested by the U.S companies in Ireland since the early 1990s (Taylor). Such a huge figure
helps in establishing that the U.S firms have been among the major employers in the country. There
are more than 700 U.S firms operating in the region and they
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36. Openness And Foreign Direct Investment
Openness to foreign direct investment. According to The World Bank (n.d.), "Foreign direct
investment is a category of cross–border investment associated with a resident in one economy
having control or a significant degree of influence on the management of an enterprise that is
resident in another economy." In 2014, the flows of FDI into Qatar reached more than USD 1,040
million See Fig. 1 ("Qatar Foreign Investment," 2016). Qatar is exceptionally open to FDI, as its
objective is to become a world–class leader in terms of its business environment for foreign direct
investment. Over the past several years, this has become a reality by way of improvements made to
the country's infrastructure and the creation of favorable foreign investment ... Show more content
on Helpwriting.net ...
Therefore, we firmly believe that Qatar's winning bid to host the 2022 World Cup, was a strategic
decision designed to attract a large number of foreign investors in future years to come.
FDI laws and regulations. Qatar's investment–stimulating policies are proceeding on a steady basis,
in an effort to protect Qatari–owned companies from significant competition. The chief legislation
governing foreign investment in Qatar is Investment Law No. 13/2000. This law permits foreign
investors to hold 49% of the capital while a Qatari partner holds at least 51%. However, Investment
Law No. 13/2000 provides leeway for 100% ownership with special government approval. This
leeway is limited to investments in certain sectors, including: "agriculture, industry, health,
education, tourism, development and exploitation of natural resources, energy, mining, sports and
entertainment services; and banking and finance" ("Investment Climate," 2015). Significantly, the
investment must contribute to the long–term development of Qatar's human resources and
technology.
In addition to the previously stated Investment Law No. 13/2000, another law which governs FDI is
Law No. 23/2006. This piece of legislature provides foreigners the right of land use over real estate,
in designated 'investment areas,' for the duration of 99 years and is renewable following government
approval ("Investment Climate," 2015). The law also
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38. Foreign Direct Investment
Introduction:
Foreign Direct Investment, or FDI, is a type of investment that involves the injection of foreign
funds into an enterprise that operates in a different country of origin from the investor" (economy
watch). The determinants of foreign direct investment may be the socio–economic, financial and the
cultural factors which usually have positive and negative effect on the foreign direct investment. The
risk is attached to the determinants of foreign direct investment. This paper examines the major
determinants of foreign direct investment exchange rate, market size, political instability,
infrastructure, openness to market and military rule. Data constraints in Pakistan some determinants
consider to be the inefficient.
Regardless ... Show more content on Helpwriting.net ...
The main determinants are openness to trade and political stability in the study. The results show
that FDI stimulates the economic growth but growth does not attract the foreign direct investment.
In fact the openness trade and political stability are the significant determinants.
This study is done Aqeel and Nishat (2004).They analysis FDI flow is well documented in literature
for the both developing and developed countries .The main determinants are used income level,
infrastructure political and macro stability. The co–integration and error correction technique is
applied to check the stationarity. The data is collected annual from 1961–2003 to SBP from the
assets and liabilities and foreign investment and exchange rate is from international finance statistic
published by Federal Bereau Statistics. The study considers exchange rate, tax rate, variables if they
explain the inflow of foreign direct investment. Also included are wages and GDP to check the test
the relative demand for labor and market size. All variables indicated correct signs and are
statistically significant except for wage rate. The study clearly emphasizes the role of these policy
variables in attracting FDI and determining its growth in both short and long run in Pakistan. The
study shows that FDI has positive impact in Pakistan.
One of the studies is done by the Dar et al (2003). This study summaries the long term relationship
between FDI and Economic Growth. It gives
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40. Foreign Direct Investment Advantages And Disadvantages
Introduction:
Foreign direct investment has been a controversial issue in international economics.
Foreign direct investment (FDI) is an investment in a business by an investor from another country
for which the foreign investor has control over the company purchased. The Organisation of
Economic Cooperation and Development (OECD) defines control as owning 10% or more of the
business. Businesses that make foreign direct investments are often called multinational
corporations (MNCs) or multinational enterprises (MNEs). A MNE may make a direct investment
by creating a new foreign enterprise, which is called a greenfield investment, or by the acquisition of
a foreign firm, either called an acquisition or brownfield investment.
Advantages of ... Show more content on Helpwriting.net ...
An FDI may provide some great advantages for the MNE but not for the foreign country where the
investment is made. On the other hand, sometimes the deal can work out better for the foreign
country depending upon how the investment pans out. Ideally, there should be numerous advantages
for both the MNE and the foreign country, which is often a developing country. We'll examine the
advantages and disadvantages from both perspectives, starting with the advantages for multinational
enterprises (MNES).
Access to markets: FDI can be an effective way for you to enter into a foreign market. Some
countries may extremely limit foreign company access to their domestic markets. Acquiring or
starting a business in the market is a means for you to gain access.
Access to resources: FDI is also an effective way for you to acquire important natural resources,
such as precious metals and fossil fuels. Oil companies, for example, often make tremendous FDIs
to develop oil fields.
Reduces cost of production: FDI is a means for you to reduce your cost of production if the labor
market is cheaper and the regulations are less restrictive in the target foreign market. For example,
it's a well–known fact that the shoe and clothing industries have been able to drastically reduce their
costs of production by moving operations to developing
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42. Foreign Direct Investment Theories And Foreign Investment
Middlesex University
TRADE AND INTERNATIONAL BUSINESS ECS 2290
REPORT
FOREIGN DIRECT INVESTMENT THEORIES AND FOREIGN INVESTMENT IN
LITHUANIA
MODULE LEADER: CHUNXIA JIANG
STUDENT NAME: MANTVYDAS NARUSEVICIUS
STUDENT NUMBER: M00509351
22/04/2016
CONTENTS PAGE
PAGE 3. Foreign direct investment
PAGE 3. Foreign direct investment theories
PAGE 4. Cost and benefits of FDI for the host country
PAGE 5–6–7. FDI in Lithuania according to World Bank data
PAGE 8. References
Foreign direct investment (FDI)
FDI appears when a commonly expanding or growing company is investing to a foreign country.
FDI consists of the acquisition or creation of assets (e.g. firm equity, land, houses, oil–drilling rigs
and etc.) undertaken by foreigners. Initial investment or ownership of the foreign equity has to be
more than 10% but does not need to be a 100%. Anything less than 10% of the ownership will be
called portfolio investment. Company which invests in foreign markets become a multinational
enterprise (MNE).
It has been a significant increase in FDI`s over the last 30 years and this is due to more open politics
and cheaper manufacturing tags in different parts of the world especially developing countries. Most
FDI outflow has historically been directed at the developed nations such as U.S. Countries such as
China offering great labour prices and unbeatable cost of materials for commonly most of the
products are

43. ... Get more on HelpWriting.net ...

45. Global Perspective On Foreign Direct Investment
CIE Global Perspectives Name: Syed Haroon Abbas
Candidate Number: Teacher: Mr. Melville
Class: Year 10 Date: Topic: How does the FDI (Foreign Direct Investment) affect a country's
development (poverty and inequality?) Appendix–
National Perspective
Global Perspective Part 1
Global Perspective Part 2
Personal Perspectives
Introduction, How does the FDI (Foreign Direct Investment) affect a country's development?
Foreign Direct Investment can have many problems and benefits, a problem with many FDI's is that
its done in the deveoped countries rather than the countries that need FDI plan such as Nigera,
Cameroon and Somalia meanwhile when an FDI project is planned in a country and on a large scale
then its very benefecial for the countries economy According to data.worldbank.org Foriegn direct
investment means that the invester ... Show more content on Helpwriting.net ...
there are three types of FDI, Horizontal FDI which is when a firm duplicates its home country based
activities at the same value chain stage in a host country through FDI and vertical FDI which takes
place when a firm through FDI moves upstream or downstream in a different value chains. why do
we use FDI
According to World Bank it has been the most efficient way of cross border trade flow into
developing countries. however is the FDI flow into different countries healthy for a developing
country according to Imf.org, FDI was stable during the financial crises during the 1997–98 and it
also played a big role in the mexican crises and the latin debt in 1980, hence FDI is a good
component during financial crises hence i will be explaining and pointing out the recent growth of
countries because of the great FDI flow into a
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47. Foreign Direct Investment Trends Of Kenya
DATA ANALYSIS AND INTERPRETATION 4.1 FOREIGN DIRECT INVESTMENT TRENDS
IN KENYA. Kenya has recently experienced a surge in foreign direct investment (FDI) following a
period of substantial declines in FDI inflows near the turn of the century. Net FDI flows to Kenya
have not only been highly volatile but also generally declined in the 1980s and 1990s. Kenya's total
FDI as a percentage of GDP rose from 4.21 percent in 1980 to 7.39 percent in 2000 however this
declined to 5.17 percent in 2006 and currently FDI as a percentage of GDP is a 7.52 percent
(UNCTAD, 2014). The investment wave of the 1980s dwindled in the 1990s as the institutions that
had protected both the economy and the body politic from arbitrary interventions were eroded. The
FDI inflows to Kenya since 2008 have considerably improved from $96Million to $514Million in
2013. In recent years, China has emerged as a key source of FDI in Kenya. Figure 1: FDI Inflows in
Eastern Africa Key: Y axis– Inward FDI Inflows in USD $ millions X axis– Years Kenya's net FDI
inflows compared to its East African neighbours however is poor. In 2012, Tanzania attracted FDIs
worth US$ 1.70 billion. Uganda received US$ 1.72 billion in investment, while Kenya drew in US$
259 million (UNCTAD 2013). Table 1:FDI INFLOWS IN EAST AFRICA. Years USD $ millions
Kenya Uganda Tanzania 2008 96 1 383 729 2009 115 953 842 2010 178 1 813 544 2011 335 1 229
894 2012 259 1 800 1205 2013 514 1 872 1146 (UNCTAD 2014) 4.2 DATA DESCRIPTION In
order
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49. India 's Foreign Direct Investments
Despite its deceleration over the past few years, India has become one of the most attractive places
to outsource operations for corporations due to several important factors: Its young, well–educated
low cost labor (Median age 27, according to the World Fact Book, CIA), the gradual economic
liberalization and industry deregulation and their several technical skills are only to mention a few
of the characteristics that make, along with China and certain other rising Asian nations, serious
candidates for hosting big corporation's foreign direct investments (Ranker, 2014). But India has had
to come a long way to stand to where it is now. Several events throughout history have made the
nation struggle, from religious to political issues, from ... Show more content on Helpwriting.net ...
Under this system, Nehru sought to strengthen the agricultural and power sectors, providing
agriculture 45% and industry 5% of the resource during the first Five–Year Plan. It initially gave
India an increase of 3.6% (Exhibit 10a) on its gross domestic product during the first five years.
Following this the government isolated the country from foreign investment (as nationalist leaders
feared a dependency on it) and trade in an effort to promote domestic production and as a strategy to
reduce imports. Since the government had also created a complex system of licensing through the
Permit Raj, resources became scarce, the complexity of its bureaucracy fostered corruption and
became a reason of delay for companies. This made it hard for other important areas of the country
to help increase its economic growth. Also, the government gradually came into possession of most
of the private sectors: By 1956, it already had control of commercial banking, oil, insurance and
some important resources such as steel and mining. The government, along with the large family
conglomerates controlled almost all Indian economy and could arbitrarily choose how each industry
would be ran; it regulated the where, the how, the how much and the whether or not a company
would be given permission to produce. Price regulation and
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51. Openness to Foreign Direct Investment
Openness to FDI Throughout a range of researches show the widespread perceptions on "open"
economies that they encourage more foreign investment. According to Charkrabarti (2001), the ratio
of exports and imports to GDP is mostly used to see the significance of openness to FDI. Jordaan
(2004) states that the more a country is open to international trade, the more likely to be a factor in
the FDI destination decision. The paper further claims that multinational enterprises engaged in
export–oriented investments tend to prefer to invest in a more open economy due to high level of
transaction costs associated with exporting. High trade protection caused by increased market
imperfection affect and implies higher transaction costs. Political Risk Generally, countries
experiencing high political risk tend to discourage FDI inflow. However, the ranking of political risk
among the list of the other FDI determinants remains unclear. According to ODI (1997), countries
with rich natural resources do not seem to require any further incentive to attract FDI. As seen in
politically unstable countries (eg. Nigeria and Angola), their extractive industries that generate high
returns seem to compensate for political instability. This gives an idea that the foreign company will
continue to invest as long as they overcome some of the political risks and being able to operate
profitability without excessive risk to its capital and personnel. In some studies, specific proxy
variables such as
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53. Foreign Direct Investment Essay
Foreign Direct Investment
Definition: An investment made by a company or entity based in one country, into a company or
entity based in another country.
Foreign direct investment has many forms. Broadly, foreign direct investment includes "mergers and
acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra–
company loans".
Advantages of Foreign Direct Investment:
1– Develop Country:
One of the primary benefits of foreign direct investment is that it helps the developing country.
When a large corporation pours millions or billions of dollars into building part of its business in
that country, it can significantly stimulate the local economy. This helps other businesses in the
surrounding ... Show more content on Helpwriting.net ...
5– Lower Unit Costs
Even though a company must invest a large amount of money to get started in a foreign country, this
can have the long–term effect of lowering costs. by take advantage of large tax benefits. The
company can also pay less for labour and other goods that may be needed for the production of
products. This lowers the overhead for the company and helps it operate more profitably
6– Reduce Risk:
Investor risk is reduced because they can diversify their holdings outside of a specific country,
industry or political system. Diversification always increases return without increasing risk.
7– Higher tax:
The standard of living in the recipient country is also improved by higher tax revenue from the
company that received the foreign direct investment. However, sometimes countries neutralize that
increased revenue by offering tax incentives to attract the FDI in the first place.
Disadvantages of Foreign Direct Investment:
1– Inflation may increase slightly.
2– Domestic firms may suffer if they are relatively uncompetitive.
3– The develop countries will solely Depends on the outsiders for majority of its economy, this put
pressure on both company and the hoist country.
4– Many MNCs have been accused of exploiting their workforces. For example, they may force
workers to work in unsafe, or simply miserable, conditions; they may employ children, and pay low
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55. Literature On Foreign Direct Investment
The literature on Foreign Direct Investment (FDI) has documented various spillover effects on host
countries. Following the same line of literature, this chapter takes the analysis further analysing
spatial spillover in Indian manufacturing firms for the period 2001–2015. The analysis is based on
two different types of weight matrices, one which is geographical based on firm's location district
and the other is based on 'economic distance' created by industry type of the firms. The results from
Spatial Autoregressive Model and Spatial Durbin Model suggest the existence of positive main
effects of foreign direct investment and on the job training but negative interaction effects with
weight matrices. The possible cause of the negative ... Show more content on Helpwriting.net ...
Horizontal spillovers are measured by the share of foreign firms in output, sales and employment.
Backward and forward spillovers are created by multiplying horizontal spillovers with the
coefficients from input output tables.
Aitken and Harrison (1999) test technological spillovers from foreign to domestic firms for
Venezuelan firms and find positive productivity effect of foreign firms on joint venture firms.
Blalocl and Gertler (2008) discuss technology diffusion and competition induced by multinational
enterprises on domestic firms's productivity for Indonesia' manufacturing sector. They find evidence
of pareto improving output and profit benefits in downstream sector. Branstetter (2006) finds the
positive knowledge spillovers between U.S. firms Japanese firms. There have been some attempts to
measure productivity sillovers in Indian manufacturing sector. Kathuria (2002) tests for the changes
in domestic productivity in the post liberalization era via spillovers. Using industry level panel data,
he finds the positive productivity benefits for the firms belonging to 'scientific' category and the
firms which invested in research and development. Pant and Mondal (2010) find that foreign firms
create technology transfers to domestic firms conditional on absorptive capacity and degree of
competition in the
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57. Foreign Direct Investment ( Fdi )
In this 21st century, we live in a time like no other. The world has transformed as a result of
globalization. Globalization has made it possible for individuals who wake up in east, to end their
day in the other part of the world. Nations came together and eliminated trade barriers, which
enabled Corporation's to begin foreign direct investment (FDI) in other nations. This resulted,
corporations transform into Multinational Enterprises. The movie "The Grand Seduction" shows the
powerful impact FDI's can have for an economy. This essay will analyze the movie and the
following statement "The attraction and retention of foreign direct investment (FDI) is a complex
and multifaceted activity for a number of different stakeholders". This essay ... Show more content
on Helpwriting.net ...
This was very successful for India "It said after the launch of 'Make in India ' initiative, there is a
nearly 40 per cent increase in FDI inflows during October 2014 to June 2015."(Economic Times).
FDI from developed countries to developing countries is a vehicle not only for providing physical
capital, but also for transferring advanced technology, managerial skills, and innovative products.
The transfer of intangible assets if often viewed as the "spillover" effects of FDI. Foreign affiliates
from developed countries may also replace inefficient firms in developing countries. In "The Grand
Seduction" once a fishing community where people lived happily were now dependent on
government welfare. The government was helping its citizens but the help in a way was degrading
lives of the people. People wanted to leave the town and go elsewhere. In the movie we see the
mayor planning to offer full tax exemption to bring in the factory in the town. The movie shows the
FDI as a last resort to revive Newfoundland. Studies show that FDI in the manufacturing sector
plays a very important role in enhancing the economic growth, but FDI in nonmanufacturing sectors
does not, example agriculture. Manufacturing FDI accounts for the lion's share of FDI inflows in
developing countries. In Foreign Direct Investment "Based on two–stage least squares,
manufacturing FDI share has positive and
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59. Foreign Direct Investment in Mexico (Fdi)
FOREIGN DIRECT INVESTMENT IN MEXICO (FDI)
INTRODUCTION
Mexico is the top trading nation in Latin America and the ninth–largest economy in the world. No
country has signed more free trade agreements – 33 in all, including the two biggest markets in the
world, the US and the EU. Altogether these signatory countries make up a preferential market of
over more than billion consumers. Much of the FDI in Mexico is attracted by the country 's strategic
location within the North American Free Trade Agreement, which has positioned it as a springboard
to the US and Canada. Other attractions are competitive production costs and a young, skilled
workforce, together with political stability and an open economy.
As a result, the number of foreign ... Show more content on Helpwriting.net ...
All the previous include fixed assets and labor capital investments to perform trade activities in
Mexico.
The liberalization of policies in Mexico during the 1990s have been highly successful in promoting
trade and in attracting greater flows of foreign direct investment (FDI). FDI and exports are
currently the driving force behind economic growth and job creation. In the last five years, the rate
of employment in firms with FDI has grown twice as fast as the national average. FDI has also
played a key role in creating new and better paying jobs.
The Commerce and Industrial Promotion Secretariat (SECOFI) promotes and regulates foreign
investment, directing it to Mexico and contributing to national development.
Investments involved in asset transference made by Mexican investors to foreign investors are also
considered foreign investments, through them DFI totally or partially acquires Mexican societies
already established.
The network of free trade agreements and market oriented policies has made
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61. Foreign Direct Investment ( Fdi )
Foreign Direct Investment (FDI) has been considered important for the growth of a country. When
the individuals or companies from a country invest in another country, it is regarded as FDI. FDI not
only strengthens the manufacturing base of the host country but also contributes to the strengthening
of the economic outlook. FDI can be seen as an investment that leads directly to job creation in an
economy. The unemployment rate decreases due to FDI, which leads to stability in economic, social
and political spheres. This leads to establishing the notion that FDI is necessary for a country
because it helps in strengthening the economy of a particular country. Ireland has been benefitted by
FDI for years. Since the early years of the twenty–first century, Ireland has attracted billions of
dollars of investment from its economic allies. The resultant economic growth has not been hidden
from the analysts. This paper will define FDI and its impact on an economy and it will also serve to
explain the role of FDI in Ireland's economic growth.
Discussion
Defining Foreign Direct Investment (FDI) Foreign Direct Investment (FDI) refers to the investment
made by an investor from a country to buy controlling shares of a business in another country. When
an investor buys stocks and bonds in a country, it is referred to as portfolio investment. Unlike other
passive investments, FDI is a direct form of investment in which the investor has to have the control
of the ownership. FDI is seen
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63. Economics: Foreign Direct Investment Essay
What impact will the prospect of deprivatization have on investment by managers of privatized
firms? The prospect of deprivatization will impact managers of privatized firms because under this
policy, certain past privatization would be declare illegal and the transactions would be reversed.
These privatized firms would have to be either run as a state–owned enterprise or sold to another
party. This will affect managers of privatized firms in that they may not have the power to make
decisions on their own, decisions will be made by the state and this may limit levels of efficiencies
in these firms, also the firms may not respond quickly to changing market conditions due to long
process of decision making. What effect will ... Show more content on Helpwriting.net ...
Therefore when the investors are deprived off their firms they will loose and the individuals,
government or investors who are accorded the firm will gain. In some cases where products
produced by the government are subsidized then privatization leads to an increase in prices, when
the government owns these firms then the consumers will experience a reduction in the price of
goods and services produced by these firms and therefore gain. Assuming more people are hurt by
deprivatization than helped, why would a local politician support such a policy? Politicians want
mass deprivatization of these firms due to some disadvantages they cause in the economy, one of
this disadvantage is that foreign investors will repatriate profits to their home country and therefore
does not benefit the host country, the other problem is that they bring stiff competition to the various
industries and host country firms will close down due to competition. Finally the politicians will
want investors in the country to invest in these firms and not foreigners and they will not want
illegal allocation of these resources to some individuals. The performances of a government in
power is required to safe guard state property and not transfer property to individuals, for this reason
therefore politicians may want to increase government popularity by safeguarding public
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65. Fdi ( Foreign Direct Investment )
Chapter Two – Literature review
2.1 The overview of FDI (Foreign Direct Investment)
FDI is where the MNE invests directly in production or other facilities over which it has effective
control in a host economy (j &t). According to Pollan (), the definition of the terms "investment" is
highly significant to Foreign Direct Investment, which can be typical comprehend as the conveyance
of capital to a country. Investment can be defined as money committed or property acquired in order
to gain profitable returns, as interest, future income or appreciation in value (business dictionary,
2014). The commonest definition used to understand the idea of FDI is the definition provided by
International Monetary Fund's (IMF). The IMF definition of FDI introduces systems and structures
which clearly demarcates foreign direct investment from portfolio investment. According to the
IMF, direct investment creates a lasting interest in an enterprise, consisting of a long–term
relationship between the investor and the enterprise and that the investor has an outstanding amount
of control on the management of the enterprise, while portfolio investment does not create an
extended relationship and the portfolio investor is rarely directly partaking in the day–to–day
management of the enterprise (Pollan,). FDI however has no comprehensive, authoritative and
ubiquitous legal definition and the test for the existence of enough degree of control differs in scope
depending on applicable law in a
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67. Essay On Foreign Direct Investment
Conceptual Framework and profile of Foreign Direct Investment (FDI) and Economic Growth in
India
Foreign Direct Investment Foreign Direct Investment is the investment of a country domestic assets
into foreign structures, equipment and organizations, but does not include investment into stock
markets. Foreign direct investment reflects the objective of obtaining a lasting interest by a resident
entity in one economy (direct investor) in an entity resident in an economy other than that of the
investor (direct investment enterprise). The lasting interest implies the existence of a long–term
relationship between the direct investor and the enterprise and a significant degree of influence on
the management of the enterprise. Direct investment involves both the initial transaction between
the two entities and all subsequent capital transactions between them and among affiliated
enterprises, both incorporated and unincorporated.
Foreign Direct Investment is investment involving a long–term relationship and lasting interest in
and control by a resident entity in one economy in an enterprise resident in another economy. In
FDI, the investor exerts significant influence on the management of the enterprise resident in the
other economy.
a. Foreign Affiliate or Direct Investment Enterprise is an incorporated or unincorporated enterprise
in which a foreign direct investor, resident in another economy, owns a stake that permits a lasting
interest in the management of that enterprise.
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69. The Advantages And Disadvantages Of Foreign Direct Investment
Introduction
Foreign direct investment (FDI) can be defined as a process whereby residents of one country (the
source country) acquire ownership of assets for the purpose of controlling the production,
distributions and other activities of a firm in another country (the host country). FDI also have
another definition like 'an investment that is made to acquire a lasting interest in an enterprise
operating in an economy other than that of the investor, the investor's purpose being to have an
effective voice in the management of the enterprise'– International Monetary Fund's Balance of
Payment Manual and ' an investment involving a long–term relationship and reflecting a lasting
interest and control of a resident entity in one economy (foreign ... Show more content on
Helpwriting.net ...
The effects can be negative or positive. According to the theory of Hill (2003), FDI can affect host
countries on resources–transfer effects, employment, competition and product and process
innovation. There are a small number of research available that explain the behaviour of local
companies when FDI take place. Nevertheless, there are many research that explain the benefits for
the local economy. Foreign direct investment can increased indirect productivity for host country
companies through the realization of external economies. Generally these benefits indicates the
importance of the way in which the influence is transmitted that referred as "spillovers"
(BlomstrOrn,
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71. Introduction Of A Foreign Direct Investment
TABLE OF CONTENTS
 INTODUCTION
 ANALYSIS
 FDI SECTORS WITH CAPS
 REASONS FOR LOW FDI IN INDIA
 RECOMMENDA TIONS
 CONCLUSION
 REFRENCES
INTRODUCTION
A Foreign Direct Investment is basically an ownership in a business in a country by a totally
different country. Foreign Direct Investment (FDI) plays a very important role in the development of
a nation. All countries need FDI's but in the case of underdeveloped or developing nations FDI is
one of the most important aspect, as this kind of investment is required to help sustain the growth of
the economy. This inturn helps improving the balance of payments and also helps in generating
employment in the country. FDI also helps to improve productivity and use the available resourecs
to the maximum.
FDI in INDIA : FDI in India plays a very important role. Foreign Investments have been existant
since the time East India Company had settled itself in India, however due to non existance of data
the same cannot be authenticated by the researchers, The Britishers then invested in business that
could be profitable just to them. After Independence foreign investment was considered as a
medium to bring in advanced technology and resources that were not available in India. However
the gulf war in the early ninteys put India's economy in serious trouble. That was when the policy
was introduced in the year 1991–92 by then the Financial Minister Dr. Manmohan Singh with the
help of the world bank as there was
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73. Foreign Direct Investment in Poland
Foreign Direct Investment in Poland Foreign direct investment, according to the OECD definition,
means an investment made by a resident of one country (the direct investor) in order to achieve
long–term benefits of capital employed in the company – a resident of another country (called the
direct investment enterprise). Usually, foreign investment in many ways have a positive impact on
the economy of the country in which they occur. The introduction of new technologies leads to the
modernization of production and increase the level and the adaptation of new methods of
management and organization improves the functioning of the company. Companies with foreign
capital play an important role in the reconstruction and modernization of the ... Show more content
on Helpwriting.net ...
In 2007, FDI reached a historical value 17.2 mld euro – These are illustrated in the table. FDI
inflows into Polish in 1991 was characterized by volatility, both in the holder (industry) and the
present (the structure of the investment). Throughout the period of foreign investors particularly
interested in certain industries, which included, among others manufacturing, financial
intermediation, trade, warehouse and logistics centers. Initially, most funds were located in entities
engaged in industrial activity, including the processor (78% of FDI in 1993). Gradually, the share of
FDI in industry decreased and in 1997 accounted for 62% (a significant share have large
privatizations). In subsequent years, the direction of investments evolved, including to the trade and
financial services, whose share in 2005 was respectively 18% and 20%. In 2005, the share of
investment in the industry were already much lower than in previous years and was around 37%.
The significance of FDI in transport, storage and communication. In the 90s the structure of FDI
tends to occur: an increase in foreign liabilities in the form of loans to businesses investing in their
foreign partners, an increase in income transfers to home countries investing entities, lowering of
reinvested profits (Reinvested earnings attributable to determine the direct investor 's share of profit,
which is in the direct investment enterprise and it is devoted to the development of the
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75. The Determinants Of Foreign Direct Investment
Topic and Motivations
The topic of my dissertation is about the determinants of foreign direct investment (FDI) in
developing countries. With the trend of economic integration, FDI has been considered as an
important part of boosting the economic development within any country around the world. Foreign
direct investments differ entirely from indirect investments such as portfolio management.The direct
way of investing in a foreign country can be conducted in a number of ways–either by establishing
overseas controlled corporations, or associate company abroad, by obtaining shares of an
multinational company, or though a joint venture.
Almost all of the countries are trying to attract FDI, as inward FDI could bring host countries a
number ... Show more content on Helpwriting.net ...
This study is focused on the two aspects: market–seeking FDI and resource–seeking FDI. These two
aspects which influence the determination of FDI can be denominated by some numerical variables.
In terms of market–seeking, GDP and the rate of inflation can be used to measure the market size
and market growth respectively. The sum of exports and imports of goods and services indicates the
openness of an economy, which also means the availability of access to regional and global markets.
On the other hand, raw materials and human capital are the key elements for those resource–seeking
enterprises. Thus, labour cost per worker in logs denotes human capital. With all the variables
above, a specific regression model are able to build to investigate the research question.
Theory of the study
FDI has grown strongly with the rapid speed of globalization. There are a few theories which
attempt to explain the motives for and determinants of it. The early theory arose on the basis of
international business. Another theory that is well accepted is called New Economic Geography.
This study is based on the theory derived from the 'eclectic paradigm' of Dunning. Dunning (1977)
introduced three types of advantages in terms of determining the location of FDI, which are owner–
specific advantage, location–specific advantage and internalization–specific advantage.
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77. Foreign Direct Investment (Fdi) in Bangladesh
–––––––––––––––––––––––––––––––––––––––––––––––––
–––––––––––––––––––––––––––––––––––––––––––––––––
–––––––––––––––––––––––––––––––––––––––––––––––––
Abstract
The issue of Foreign Direct Investment (FDI) has been receiving phenomenal attention from many
governments. Bangladesh is not lagging behind from it. Economic development for the developing
countries like Bangladesh is largely dependent on FDI. The major challenges for the host country
are to ensure an eye–catching and conducive investment climate to foreign investors for FDI inflow.
In recent years, Bangladesh has been devoting efforts for attracting FDI offering a lot of lucrative
incentives and benefits. Though attempts taken to increase FDI inflow, the result achieved is not ...
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In this context the aim of this paper was to find out the determinants, impediments, favorable
environment and potential of FDI for Bangladesh. Less developed infrastructure of Bangladesh is
vital problem for FDI inflows. The trend of foreign investors goes in infrastructural investment such
as electricity, fuel, air and sea communication.
–––––––––––––––––––––––––––––––––––––––––––––––––
Literature Review
2.1 Methodology
This paper is fully based on secondary information. Content Analysis Method, which is commonly
known as the review of the previous literature, has been followed in the preparation of this article.
Apart from that secondary information have been collected from the statistics Department of
Bangladesh Bank, Investment Handbook of Bangladesh Board of Investment, Bangladesh Economic
Review 2006 and Bangladesh Bank's Annual Report 2006. Some information has also been
collected from the daily newspapers and Internet sources. Used data has been presented through
tabular and graphical analysis.
–––––––––––––––––––––––––––––––––––––––––––––––––
Main Body
3.0 Determinent of Foreign Direct Investment

78. Arguments supporting FDI in developing countries suggest that recipient countries need to fulfill
some preconditions to create a favorable business environment. It has certain advantages to both the
host country and the investor. Host countries' macroeconomic policy, tax regime, regulatory
practices are critical determinants for attracting FDI.
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80. Research On Foreign Direct Investment
To interested investing parties, After long consideration from our management team, we have
decided to introduce a contingent set of initiatives corresponding to "Foreign Direct Investment" in
Ethiopia. There has been a considerable rise of FDI opportunities recently within Ethiopia. The
following document will discuss; cultural, political, as well as economic trends and patterns that
influenced our outlook on FDI into Ethiopia. Moreover, this memo will analyze the potential risks
and or barriers to entry, foreign firms could encounter when attempting FDI to Ethiopia. Lastly, our
team will aim to outline a proposed plan relating to FDI in Ethiopia for our organizational business
partners. There were many sources of information which influenced our "Foreign Direct
Investment" conclusion for Ethiopia such as; research on cultural, political, and economic factors
ongoing currently in Ethiopia. Additionally, our group is a combination of "Foreign Direct
Investment" specialists including two Ethiopian counterparts residing within Ethiopia. Hence, a part
of our investment plan includes first–hand direct insider Ethiopian research, conducted from
Ethiopia. Accordingly, the strategies developed, by our management team, for FDI in Ethiopia have
been formulated using high business acumen and business analytics pertaining to present Ethiopian
economic conditions. Seemingly, one will see from these proposed FDI initiatives that Ethiopia is
one of the most stable countries for
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