Nobody downloaded yet

The Important Role of Foreign Direct Investment In BRUNEI: Current Status and Future Direction - Research Paper Example

Comments (0) Cite this document
Summary
This paper discusses Foreign Direct Investment to Brunei given the BEDC’s commitment in November 2001. The paper investigates the role of foreign direct investment to the growth of the economy of Brunei by studying the relationship between macroeconomic variables and Foreign Direct Investment…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.5% of users find it useful
The Important Role of Foreign Direct Investment In BRUNEI: Current Status and Future Direction
Read TextPreview

Extract of sample "The Important Role of Foreign Direct Investment In BRUNEI: Current Status and Future Direction"

Download file to see previous pages As Davies and Ellies (2006) put it tax subsidies are directly contingent on the multinational enterprise (MNE) satisfying various performance (PRs). Multinational enterprises may be allowed tax credits on the condition that they create at least 50 new jobs per year, that they export at least 70% of their output and that they maintain environmental protection and many others.
Brunei, situated on the Northern part of the Borneo Island in Southeast Asia is one of the smallest countries in the Southeast Asian region. It has a land area of 5,765 square kilometers and a population of 340,200 inhabitants as of 2002. (Anaman, 2004: pp 778). Brunei's economy is highly dependent on the export of oil and gas as the main source of revenue. For example, oil and gas revenue contributed an average of about 80.0% and 55.2% in the years 1971 to 1990 and 1991 to 2001 respectively. (Anaman, 2004: pp 778).
According to Anaman (2004), the country took a positive upturn as a result of world market oil price shocks of the early to the middle 1970s and the early 1980s when global market oil prices were at record high levels. As a result, the government established a virtually complete welfare system in the country (Anaman, 2004 Pp 778), (Nohlen et al, 2001: Pp 49) with free education (from primary school to University) and free health care system for all citizens. Following this development, the country was ranked 31st among 175 countries based on the United Nations Development Programme human development index.
Brunei remains the wealthiest country of the 57-member countries of the Organisation of Islamic countries in terms of per capita GDP. It is also the fourth richest country in Asia after Japan, Singapore, and Hong Kong. (Anaman, 2004: pp 778). The Brunei dollar ($B) exchange rate relative to the U.S dollar in May 2004 was US$0.59/$B. The Brunei dollar based on a parity agreement between Singapore and Brunei has also been at parity with the Singapore dollar since the 1960s. (Anaman, 2004: pp 778).
Brunei has been facing economic problems due to a stagnant economy since the mid- 1980s and due to issues related to government budget deficits for the majority of the years since independence in 1984. (Anaman, 2004: pp 778). Real GDP growth rate stood at an annual constant rate of 5,1% between 1971 to 1990 whereas the period 1991 to 2001 witnessed a drop in the GDP annual growth rate to -0.9%.  


...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Important Role of Foreign Direct Investment In BRUNEI: Current Research Paper”, n.d.)
The Important Role of Foreign Direct Investment In BRUNEI: Current Research Paper. Retrieved from https://studentshare.org/business/1525077-research-proposal-college-essay
(The Important Role of Foreign Direct Investment In BRUNEI: Current Research Paper)
The Important Role of Foreign Direct Investment In BRUNEI: Current Research Paper. https://studentshare.org/business/1525077-research-proposal-college-essay.
“The Important Role of Foreign Direct Investment In BRUNEI: Current Research Paper”, n.d. https://studentshare.org/business/1525077-research-proposal-college-essay.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Important Role of Foreign Direct Investment In BRUNEI: Current Status and Future Direction

Foreign Direct Investment

...? ECP001N Table of Contents  ECP001N Table of Contents 2 Answer to Question 3 Costs and Benefits of FDI 3 Determinants of FDI 4 Answer to Question 2 5 Answer to Question 3 6 Answer to Question 4 7 Answer to Question 5 8 References 10 Answer to Question 1 Foreign Direct Investment is regarded as one of the most essential of all factors that assist in economic development of a nation. However the role of FDI behind economic development of an economy is only a recent recognition; this had not been the scenario, for example, immediately after World War II. Post World War II, USA beat Britain and gained status as the greatest contributor to FDI inflows in...
11 Pages(2750 words)Assignment

The issue of regional currency unification

...their influence in bringing about regional cooperation, and currency union could probably be the first and important step in this direction. Scope for the emergence of new regional monetary unions Monetary union implies upward delegation of formal authority to a common monetary institution of the union of the states. This common monetary institution functions on partnership basis, and the constituent countries pool together the monetary control which cannot be construed as surrender of authority to a foreign currency as in the case of Latin American countries where dollarization is prevalent. The recent economic developments in the Asian countries like India and China and economic growth...
26 Pages(6500 words)Essay

Foreign Direct Investment (FDI)

...?FOREIGN DIRECT INVESTMENT Foreign direct investment has increasingly been a business trend of multinational corporations within the global economy. Foreign Direct Investment (FDI) is defined by Ho and Yiu Lau (2007, p. 39) as the investment of a company in a foreign country which aims at acquiring a long-term economic interest in business enterprises within the host country. FDI can also be defined as an investment of a company in a foreign country by building a factory within the host country. It is through a company’s direct investment in machinery, building and equipment in another country that foreign direct investment is made possible. With the emergence of globalization and the global economy, FDI has played a leading role... is a...
10 Pages(2500 words)Essay

Foreign Direct Investment

... aspect of IFIs in the past decades was the growth of globalization and the increasingly integrated role of the capital markets. In the early 1980s, a bulge in the level of capital flows in the direction of emergent markets became more prominent, on the basis of managing the oil revenues. Yet this degenerated into the 1982 economic meltdown due to accumulated debts. After a lull of economic crisis and the development of stronger macroeconomic policies which yielded stability, the world economy registered a sharp rise in the capital flows in the early 1990s. This came at a time when many countries that sought to rely upon direct foreign investments and credit services from non-banking organizations, accounted for the primary source... that...
17 Pages(4250 words)Essay

The opportunities and challenges of the Chinese market in the context of globalization

...indicate the current global division of labour. In effect, a crucial element of China’s production conditions is based on its transnational and global profile. For instance, China has allowed foreign direct investments at unprecedented levels, totalling $650 billion from 1978, which is more than Japan’s accumulated stocks from 1945 to 2000 (Gilboy, 2004). China is the third biggest FDI recipient and significant FDI flows have led to major growth in exports and imports. World-class MNCs have used China’s competitive wages for its export goals. Through incentives in duty exemptions in export production, the processing trade has grown (Yang, 2003). In 2005...
40 Pages(10000 words)Essay

Foreign Direct Investment Speech/Presentation

...Presenation of research proposal on the topic: The Important Role of Foreign Direct Investment In BRUNEI: Current Status and Future Direction Introduction Ladies and gentlemen, You are all welcome to this presentation. I am standing here today to present to you a proposal on the above topic. I will begin by presenting a brief picture Brunei and its current economic situation. I will also present to you some information about measures taken by the government to react to the current economic problems. I will continue by presenting a regression model for that will be used in analysing the data that I intend to use in this study. I will conclude the presentation by discussing the data to be used in the study and important sources... that will...
5 Pages(1250 words)Speech or Presentation

Foreign Direct Investment

...Foreign Direct Investment When a multinational firm makes a choice to enter a foreign country, there are several factors that play a role in its decision, but monetary considerations play the pivotal role in influencing such decisions. The kind of infrastructure available in the target country, the facility of less expensive production facilities thereby allowing for a greater margin of profits and gains from exchange rates are all important factors. Foreign Direct Investment influences international trade and lowers the cost of intra-firm trade. The increase in volume of...
9 Pages(2250 words)Essay

Foreign direct investment

...The impact of foreign direct investment on economic growth of less developed countries By Ezekiel Eyamekuare Outline: Introduction: Aims and objectives: Motivation: Development Economics and its usefulness in this study: A Brief Review of Literature: Methodology: Discussion: An outline of the chapters to be included in this project: Reference: Introduction: Foreign direct investment (FDI) has been one of the important characteristics of the global economy for the past twenty years. It has developed at an unparalleled pace for over a decade. Liberalization of overseas investment regime is an...
24 Pages(6000 words)Research Paper

Trangle

1 Pages(250 words)Article

Foreign direct investment

...Foreign Direct Investment Though most companies operating globally choose to export to other market entry modes, there are situations in which exporting may not be feasible. In such circumstances, companies may opt for direct investment within other countries, or enter markets via diverse collaborative strategies that enable entities to diversify its assets and risk across diverse countries by engaging in contractual agreements with multiple potential partners. Companies may find it advantageous by producing in foreign countries compared to exporting to those countries based on a variety of reasons (Froot 57). #1 Why companies often...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic The Important Role of Foreign Direct Investment In BRUNEI: Current Status and Future Direction for FREE!

Contact Us