Advantages and Disadvantages of Foreign Investment Protection - Admission/Application Essay Example

The researcher states that FDIs make the positive contribution to a hosting nation by supplying technology, capital and management resources that would not have been there. The transfer of resources can encourage economic growth of the hosting nation. It may lead to a lot of problems especially if the objectives of the venture are not clearly communicated to all the stakeholders or if partners do not provide good leadership, especially during the initial stages. It is an economic and political federation that consists of 27 member countries that make common policy in various areas.

It is one of the latest and successful economic integration that is aimed at unifying entire Europe. On the positive note, some of the impacts of economic integration among EU member states include inflow of FDI among the member states. This led to increased investments in sectors like infrastructure, energy, and telecommunication. Harmonization of economic policies among the member countries resulted in the adoption of a common currency. Member states hand d to maintain long-term interest rates within 2% level and inflation rate at 1.5%. This strained the economic performance of some of the countries as they tried to adjust to the requirements of EU.

The Canadian businesses are given protection under the agreement where the businesses will have further impetus to expand their partnerships and presence with China and also take economic possibilities. Canada’s energy sector has been a beneficiary of China’s recent investments that come to a result of Canada-China FIPA, where China has invested over $30 billion in gas and oil assets in Canada over the last 6 years. Therefore, ratification of Canada-China FIPA facilitated more Chinese investments into Canadian energy sector.

The sanctions posed by US and EU on Russia has some effects on the economic performance of the country. For instance, the sanction affected the state companies, state enterprises, and banks.