StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Foreign Direct Investment - Assignment Example

Comments (0) Cite this document
Summary
This essay presents FDI which involves the ownership of entities abroad for production, research and development, access of raw materials and other resources. FDI is considered superior to other forms of capital inflows because FDI enables the transfer of technology…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.6% of users find it useful
Foreign Direct Investment
Read TextPreview

Extract of sample "Foreign Direct Investment"

Download file to see previous pages From the discussion it is clear that countries seek FDI due to the technological benefits that boost production mechanisms in several sectors across the economy. FDIs also create adequate employment opportunities, thereby enhancing the economic growth prospects of the host country. FDIs, nonetheless, increase the quality of products within the market, hence giving the consumers a wider range of products from which they can choose.
This paper stresses that FDI is responsible for stimulating the economic development of a target country. Besides, the FDI enables companies to enjoy the benefits that accrue from larger markets in the global economy. Therefore, FDI ensures that industries capitalize on their sales through international presence. While at it, FDI creates new employment opportunities, thereby increasing the income and the purchasing power of people within an economy. This leads to economic growth. As stated earlier, FDI presents a boost in the human capital resources, through sharpening the knowledge and competence of the cross-border workforce. Many companies also benefit from the tax incentives in their respective business fields. Apart for the development of knowledge, FDI enables the transfer of resources in form of technology, skills and raw materials, hence limiting the disparities between the organizational revenues and costs. FDI can hinder the domestic investment by offering excess competition. In addition, the risk of political instability threatens to destabilize the operations of foreign investments. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Foreign Direct Investment Assignment Example | Topics and Well Written Essays - 2250 words”, n.d.)
Foreign Direct Investment Assignment Example | Topics and Well Written Essays - 2250 words. Retrieved from https://studentshare.org/business/1702055-foreign-direct-investment
(Foreign Direct Investment Assignment Example | Topics and Well Written Essays - 2250 Words)
Foreign Direct Investment Assignment Example | Topics and Well Written Essays - 2250 Words. https://studentshare.org/business/1702055-foreign-direct-investment.
“Foreign Direct Investment Assignment Example | Topics and Well Written Essays - 2250 Words”, n.d. https://studentshare.org/business/1702055-foreign-direct-investment.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Foreign Direct Investment

Foreign Direct Investment

... input resources and hence, Germany gets an edge over Vietnam in this case. In fact, after the introduction of knowledge base as one of the most important factors contributing in the production process, Heckscher-Ohlin model of trade was found to be applying for 11 out of 15 OECD nations (Nishioka, 2005). References Aghion, P. & Durlauf, S. N. (2005). Handbook of economic growth, Volume 1, Part 2. London, UK: Elsevier. Ahmed, S. & Sattar, Z. (2004). “Trade liberalisation, growth and poverty reduction: The case of Bangladesh” [PDF]. Available at http://siteresources.worldbank.org/INTSARREGTOPINTECOTRA/34004324-1120490724746/20926223/TradeLiberalization.pdf [Accessed: July 28, 2011]. Assadourian, E. “Foreign Direct Investment Inflows Decline...
11 Pages(2750 words)Assignment

Foreign Direct Investment (FDI)

...in the development of global business enterprises. Kennedy (2001, p. 585) say that the definition of foreign direct investment has been broadened with the increased change in the patterns of global investment by companies. As a result, FDI includes acquisition of managerial interests in companies and enterprises in foreign countries. The managerial interest may not involve investment in buildings or equipment but managerial decisions are determined by executives who are foreign to the host country. The rapid growth of companies which is attributed to the internationalization and use of technology has expanded FDI to...
10 Pages(2500 words)Essay

Foreign Direct Investment

...?The global economy is becoming more and more integrated and countries are now exploring ventures in other parts of the globe for sustainable and lucrative investments. Direct foreign investment (DFI) is one of the strategies which have lately been adopted by various MNCs in order to make the most of the foreign economic environments. DFI encompasses a broad spectrum of investment ranging from investment in existing companies, real estate, equity and capital market and even investment in the development of infrastructure. Acquisition of foreign entities and establishment of joint ventures abroad can also be categorized as DFI. Any capital venture, along with forecasts of return and profit, also comes with an array of risk and uncertainties...
10 Pages(2500 words)Research Paper

Chinese Foreign Direct Investment

...into the Zambian economy. Study Objectives This study examines Chinese investments in Zambia as foreign aid to the country. The general objective of the paper will be to find out whether Chinese foreign direct investments could lead to long term economic growth of Zambia. The paper seeks to fulfill these specific objectives: 1) To find out the extent of Chinese foreign direct investments in the Zambian Mines 2) To establish the impact of the Chinese foreign direct investments on performance of mining firms in Zambia. 3) To investigate the effects of...
13 Pages(3250 words)Research Paper

Starbucks Foreign Direct Investment

...?Starbuck’s Foreign Direct Investment Expansion through Licensing Format Starbucks was founded in 1971 as a small coffee store in Seattle’s Pike Place market. By 1992, when it went public, it had become a national phenomenon and was expanding at a break-neck pace (Pride, Hughes & Kapoor, 2009). Patterson et al. (2010) write that the two main reason Starbucks was able to become an international phenomenon are: Firstly, unlike any other coffee brand Starbucks was able to Americanize the European coffee-drinking tradition. Secondly, Starbucks did not just sell coffee, they sold an experience (2010, p. 41) Starbucks has laid significant emphasis on consistency of product, atmosphere and services across their stores globally. In other words...
7 Pages(1750 words)Literature review

Foreign Direct Investment

... in the sense that it encompasses the existence of a supplier in a country that is a member state, for purposes of operating their businesses and providing the services needed. For example, when a foreign-owned financial institution such as a bank may sets up a subsidiary in the country and provides financial services to the locals. By including trade opportunities involving sales made by a commercial entity, the Convention technically encompasses foreign direct investment, which takes up a large proportion of all financial service dealings. Mode 4 involves the provision of services via existing natural persons. This can happen through autonomous financial specialists or financial institution executives from or in a Member state. Notably...
17 Pages(4250 words)Essay

Foreign Direct Investment Risks

...will be an advantage to an investor such that if such support infrastructure exist the higher the possibility that there will be foreign direct investment in a country. Foreign investors also fear that they may invest in foreign countries and loose a lot of money if they decide to close down their operations, an example is where a firm may invest much on infrastructure such as land and buildings and heavy machinery that may be difficult to liquidate once they want to close down their investment in the foreign country. Due to the fact that these assets cannot be moved from one country...
2 Pages(500 words)Essay

Foreign Direct Investment

.... A multinational firm in a developed country may face higher labor costs, scare production resources and higher production costs when locating its subsidiaries in its own home country, while a shift overseas may involve a larger initial investment but is economically beneficial in the long run because the margin of profits are higher, with the development of new markets. 1.1: Introduction: Foreign Direct Investment refers to the investments that a multinational firm makes when it is initially located in one country but decides to locate to or acquire substantial production facilities in another country. FDI is a significant factor in operation of MNCs. As Bernard, Jensen and Schott [2] point out, its importance to the U.S. economy...
9 Pages(2250 words)Essay

Foreign Direct Investment

.... However the FDI strategy is not always a beneficial means of investment and in this vein this essay will look at the effectiveness of the conditions in the Host countries which possibly attract FDI growth in relation to western and under developed countries and whether the data from large organisations like the World Bank is to be trusted in making competitive decisions about the FDI success and strategy.In this vein the question will discuss alternatively with examples whether the success factors for FDI hold true for some industries and may be disadvantageous to some industries. Introduction Foreign direct investment or FDI can be defined as an investment made to obtain long lasting shares or interest in out of country enterprises...
9 Pages(2250 words)Assignment

Foreign Direct Investment

...ivation for firms to prefer FDI over exports, or licensing, continues to be an area of focused research. Are their theories that explain why firms choose FDI? This essay explores the reasons for growth of FDI, and different venture options available to a firm. The paper differentiates horizontal FDI versus vertical FDI, and goes on to elaborate specific features of three theories viz.: (a) market imperfections approach (b) product lifecycle theory, and (c) oligopolistic reactions. The paper analyses these approaches, and concludes by selecting the theory that best explains the growth of horizontal FDI. Reasons for growth of FDI Succinctly put, foreign direct investment provides a viable route for companies to take advantage of...
10 Pages(2500 words)Dissertation
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 Assignment on topic Foreign Direct Investment for FREE!

Contact Us