Nobody downloaded yet

1. What other costs and benefits might arise from inward FDI(IFDI) 2. Are these costs and benefits likely to be determined by country and firm level of development and growth Use examples to explain your answer - Essay Example

Comments (0) Cite this document
Summary
Allowing FDI gives the local business organizations an opportunity to share skills, knowledge and experiences with multinational companies that come to invest in the country. Knowledge assets that multinational organizations have such as trademarks, proprietary technology and…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.6% of users find it useful
1. What other costs and benefits might arise from inward FDI(IFDI) 2. Are these costs and benefits likely to be determined by country and firm level of development and growth Use examples to explain your answer
Read TextPreview

Extract of sample "1. What other costs and benefits might arise from inward FDI(IFDI) 2. Are these costs and benefits likely to be determined by country and firm level of development and growth Use examples to explain your answer"

Download file to see previous pages Other benefits such as labor turnover operate through regional lines. For example, when FDI was allowed in the U.S there was significant movement of scientists between local and foreign firms.
Although the domestic firms enjoy benefits of spillover from the foreign firms, the government incurs subsidy costs. In an effort to encourage foreign investment in the local market, most governments usually, offer subsidies and tax breaks to foreign firms. When the cost of subsidies increases taxation increases thus hurting the local economy. For example, in the year 1992 the maximum corporate tax in US was 34% and 33% in UK meaning that these governments only gained approximately 1/3 of the total gains (Maskus, 1994).
Costs and benefits of allowing FDI is likely to be affected by the level of development and growth of the country and firms. For example, the government only gives subsidies to new firms but after they become stable, such firms sustain themselves. Therefore, when firms more continue to generate more profits, increase market share and reduce risks the country’s economy becomes more stable. The benefits continue to increase while the costs decrease. Foreign firms that are underperforming offer less benefit to the domestic firms and the host governments and so the governments have to spent more to make them profitable and operational (Moran, 2005).
Goldstein, I., Razin, A., & National Bureau of Economic Research. (2005). An information-based trade off between foreign direct investment and foreign portfolio investment. Cambridge, MA: National Bureau of Economic Research.
Haskel, J., Slaughter, M. J., Pereira, S. C., & National Bureau of Economic Research. (2002). Does inward foreign direct investment boost the productivity of domestic firms?. Cambridge, MA: National Bureau of Economic ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“1. What other costs and benefits might arise from inward FDI(IFDI) 2 Essay”, n.d.)
Retrieved from https://studentshare.org/business/1665253-1-what-other-costs-and-benefits-might-arise-from-inward-fdiifdi-2-are-these-costs-and-benefits-likely-to-be-determined-by-country-and-firm-level-of-development-and-growth-use-examples-to-explain-your-answer
(1. What Other Costs and Benefits Might Arise from Inward FDI(IFDI) 2 Essay)
https://studentshare.org/business/1665253-1-what-other-costs-and-benefits-might-arise-from-inward-fdiifdi-2-are-these-costs-and-benefits-likely-to-be-determined-by-country-and-firm-level-of-development-and-growth-use-examples-to-explain-your-answer.
“1. What Other Costs and Benefits Might Arise from Inward FDI(IFDI) 2 Essay”, n.d. https://studentshare.org/business/1665253-1-what-other-costs-and-benefits-might-arise-from-inward-fdiifdi-2-are-these-costs-and-benefits-likely-to-be-determined-by-country-and-firm-level-of-development-and-growth-use-examples-to-explain-your-answer.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF 1. What other costs and benefits might arise from inward FDI(IFDI) 2. Are these costs and benefits likely to be determined by country and firm level of development and growth Use examples to explain your answer

Airbus: Financial Benefits & Costs

...trillion market value. Some of the factors that drive this kind of high demand include higher degree of urbanization, emerging economies, increasing number of mega cities, and the growth of population with the increasing wealth. In addition, other forces include the need to replace with the new eco-efficient models the old crafts in the markets established, and the ongoing low cost carriers’ expansion (Thornton, 1995). Section II: ABC Benefits. This section highlights the benefits of Activity Based costing if employed by Airbus Company. The ramification of its implementation and the structure of the costs distribution...
13 Pages(3250 words)Research Paper

The costs and benefits of alternative newcomer adjustment strategies

...? The Costs and Benefits of Newcomer Adjustment Strategies Task: The Costs and Benefits of Newcomer Adjustment Strategies There exist slightly varied delineations of organizational socialization. For example, Bauer et al. define organizational socialization as the procedure through which an individual transforms from being foreign to the organization to being a member (Bauer et al 2007). Thomas and Anderson used this definition (Thomas & Anderson, 2006). Chao et al. opine that organizational socialization deals with the learning materials and procedures through which an individual adapts to a specific role in an organization (Chao et al.,...
9 Pages(2250 words)Research Paper

Alternative energy sources: costs and benefits

...and utilizing alternative energy resources at residential level, it is very important to determine the various costs and benefits associated with the use of any particular renewable or alternative energy sources at residential level. Individuals who generate electricity on their own benefit in several ways, they can save money along with getting independency from the electric grid used by the entire population in their area; moreover, they use the energy that does not disturb the environment. While considering which alternative or renewable energy system to use, the...
8 Pages(2000 words)Research Paper

Potential Costs and benefits to Henley Manufacturing

...of auditing the reports before announcement, the cost to accounting staff tasked with maintaining the firm’s financial statements, as well as the cost of printing the same and mailing to all the shareholders before the annual meeting day (Kimmel, Weygandt & Kieso, 2011). Third, there may be costs of competitive disadvantage as rival firms may use the same information in ways that may be detrimental to the company. Examples of information that may be leaked are the advertising strategies, pricing strategies and new products and markets development plans. Fourth, such an announcement will lead to incurring...
3 Pages(750 words)Essay

The Costs and Benefits of IT Outsourcing/Offshoring

.... Executive Management Provides for management to keep your finger on the pulse in regards to the offshore team. This includes retaining control over such things as the company's 800 number to ensure quality is maintained; work and perform under the home country's laws and make sure the outsourcer has an office in the company's home country. 2. Information Management Ensure things like data being written directly to your home country's based databases, checking real-time traffic reports no matter that the vendor is accepting calls, customizing CRM applications to bring in the vendor to use...
8 Pages(2000 words)Essay

Costs

...but it will create extra demand from customers which the other companies will not let happen. Hence, if all the companies decide to reduce the prices, everybody gains very little and there is no change in the market share. This behavior is represented by the inelastic part of the diagram D2. Considering the options, firm A is likely to reduce or increase the prices. Hence, in a oligopolistic market, the firms face two demand curves with different elasticities. The demand curve appears to be kinked at the current prices, represented by x in the diagram and hence, the name, kinked demand curve. References 1. Glanville, Alan. Economics from a global...
6 Pages(1500 words)Essay

Benefits and costs

..., under the CAA Amendments (CAAA), vehicle standards were made stricter (EPAa). Under the amendments, ozone pollution, carbon monoxide and particulate matter emissions were addressed. Procedures such as inspection/maintenance programs and vapor recovery installations at gas stations were introduced (EPAb). A permit system will be developed by states to control emission levels of sulfur dioxide through cap and trade program (EPAb; Peltz & Fitzgerald 2). Again, the US Department of Energy is funding projects in an attempt to improve fuel efficiency (OEERE 2). Financial costs of compliance will be borne mostly by the vehicle users. The...
4 Pages(1000 words)Essay

The Risks, Costs, and Benefits of Consumer Loan Options and Steps Needed To Control Costs

...affect the level of profitability and sustainability in the business operations. 1.1.2 Cost of Consumer Loans There are a number of costs associated with consumer loans. These include interest, carrying charges and installment price. Before banks issues loan facility to customers, there should be a clear calculation on the amount of money to be recovered on installments basis, as well as, the amount of interest payable. All these are dependent on the amount of loan offered to the customer, the repayment period, income of the customer and interest rates as set by the financial institution. 1.1.3 Benefits of Consumer Loans One of the benefits of...
3 Pages(750 words)Research Paper

Costs of benefits

...to the employees with the rest given very little weight. Of more interest is the allocation to retirement and the savings that come with it. It is the least area over which the company allocates its resources. The figure below shows the percentage growth packages allocation within the United States for the period between January 2004 and January 2014 The trend within the U.S economy is of greater interest and explains further the recent decision by major organizations to review their benefits packages (Barnow et al, 2013). As of the year 2004 towards the year 2008, the general of cost allocation to benefits and remunerations was on a declining slope...
2 Pages(500 words)Essay

Costs

...and development. Using these two costs as examples, explain the difference between committed and discretionary fixed costs. Discretionary fixed costs ordinarily refer to short term fixed costs whose occurrence is due to decisions devised by a given firm’s management in regards to spending on certain items or products (Aartsengel, & Kurtoglu, 2013). These include research and development whereby they are at the discretion of the managerial team in terms of manipulating them based on an already predetermined period, for instance, quarterly, monthly or annually. Hence,...
1 Pages(250 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 Essay on topic 1. What other costs and benefits might arise from inward FDI(IFDI) 2. Are these costs and benefits likely to be determined by country and firm level of development and growth Use examples to explain your answer for FREE!

Contact Us