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International Study-1 - Assignment Example

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The concept of foreign direct investment signifies transfer of capital from one country to another country due to expansion of business activities. During the year 1980s, when…
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International Study-1
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International Study-1

Download file to see previous pages... In this regard, it can be stated that Japan as well as the United States have become the world’s largest net international borrower during this stage. Moreover, it has also been revealed that the trend of foreign direct investment have also rapidly increased among the emerging European countries. With regards to determining the positive impacts of foreign direct investment on an economy, it is highly essential to identify the favorable factors, which may affect the political and financial conditions and growth of the economy in terms of encouraging more investments (Drezner 53-78; Markey and Ravenswood 1-26).
However, the trend of foreign direct investment has completely changed during the early 21st century. In this regard, it can be asserted that foreign direct investment has improved the opportunities for larger organizations as well as multinational enterprises in terms of its scale and scope. At the same time, it can also be claimed that increased tendency of foreign direct investment has initiated competitive advantage among the global players. Moreover, it has also assisted multinational enterprises to perform their extensive and cross border business operations effectively in the global market (Drezner 53-78; Markey and Ravenswood 1-26).
In this assignment, the objective is to identify the impact of the foreign direct investment on receiving countries in terms of positive and negative aspect. At the same time, the study will try to identify the effect of the foreign direct investment on the global multinational enterprises. Moreover, the study will also help in recognizing the performance of the economy in terms of micro as well as macroeconomics.
Foreign direct investment has assisted developing countries’ to improve their economic performance in the global market context by improving trade. In this regard, it has been perceived that foreign direct investment has influenced the performance of the multinational ...Download file to see next pagesRead More
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