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Global Econ/international study - Essay Example

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The impacts of FDI can be fundamentally determined as the capacity to provide employment and most vitally raising business opportunities at large. With reference to one…
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Global Econ/international study
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"Global Econ/international study"

Download file to see previous pages In this similar context, it will be vital to mention that smooth FDI inflow is primarily based on the factors like accessibility of potential workforce, cost of labor and market potentiality among others (Wacker 1-43).
With regards to determine the positive impacts of FDI on the economy of India, it can be asserted that this particular determinant is creating favorable financial conditions towards the growth of the economy in terms of encouraging more investments. Specially mentioning, the issue regarding the economies of scale can be reduced with the help of changing industrial policies that can be either based on the aspects of promoting technical knowhow and increasing productivity. FDI not only leads creation of money in the form of making substantial investments, but also provides a control to the foreign countries specifically on the host nations at large. The impact of FDI as per the study of macroeconomics can be illustrated as depicted in the ...Download file to see next pagesRead More
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