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Reading Discussion - Book Report/Review Example

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Foreign Direct Investment (FDI) has sparked controversy amongst nations because of the perceived downfalls that it might cause to the respective economies. For instance, the Indian congress rejected a bid to permit Wall Mart to invest in some sectors of the economy deemed to be…
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Reading Discussion
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Reading Discussion Summary Foreign Direct Investment (FDI) has sparked controversy amongst nations because of the perceived downfalls that it might cause to the respective economies. For instance, the Indian congress rejected a bid to permit Wall Mart to invest in some sectors of the economy deemed to be unproductive due to scarcity of resources (The Hitchers Beat, n.p). However, it is apparent that FDI can bring considerable changes in the sectors of technology, employment, economic growth and consumer empowerment. It is also a concern that the Indian farmers are not reaping substantial benefits from their produce because of the corrupt intermediaries and inadequate cold storage facilities. The introduction of the FDI will help with alleviating the above raised concern and improve the livelihoods of the farmers, influencing the economic development (The Hitchers Beat, n.p). Contrarily, the opponents of the FDI involvement suggest that the strategy would make the US to control the foreign investment through their raised quota requirements.
I think the article was meant to misinform the public because of the middlemen who benefit at the expense of the farmers. Encouraging foreign investment is an appropriate way of increasing job opportunities, capital outlay and innovation in a country. The critics of this move do not give genuine reasons why FDI will affect their economy (The Hitchers Beat, n.p). This is because they are only concern with the benefits that Wall Mart will attain from the FDI without focusing on the costs associated with the move.
1. My question would be why the political perspectives do not consider economic value of the strategy? It is evident that the bill was shot down as a political statement to the ruling party concerning its foreign policy and relations with the West.
2. Another question is why the farmers do not want to do away with the middle men who exploit them? This shows that the middlemen are acting for the politicians who do not want the FDI to take place.
The article is interesting because it highlights the benefits of FDI in the South American countries. This is essential in showing the Chinese political class that FDI is productive and beneficial to the common citizens (The Hitchers Beat, n.p). The relation of this article to the current events is the formation of the Economic blocs to support member countries in the region. This is to boost economic activities with the neighboring countries in a bid to attract foreign investments.
Work Cited
The Hitchers Beat. “The WalMart Bogey – Debunking some myths about FDI in Indian Retail.”
The Hitchers Beat. Web, 2012. Retrieved from
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