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Why developing countries prefers direct foreign investment in other developing countries?
because they have no sufficient amount of capital that they can invest in various way of the country.
Can motivate forgien direct investment?
There are many factors that motivate foreign direct investment. The main point of motivation is the competitiveness to obtain the foreign direct investments within each developing country.
What have you learned about foreign direct investment and the political economy of trade?
foreign direct investment is that investment in which a foreign country invests in a host country.
What is the most popular foreign investment made?
A foreign investment is an investment made by a company or entity based on one country, into a company based in another country. The most popular foreign investment made is China.
How did the Mexican government feel about foreign countries doing business in Mexico?
It is welcome. Foreign Direct Investment (FDI) allows the country greater economic growth, something especially needed by a developing country like Mexico.
What is the impact on currency when there is foreign investment?
In my opinion when there is foreign investment, there will be more demand on the country which is invested. Therefore, its currency is appreciated. Besides, that would help to boost the economy, so the currency will go up.
What is full form of FDI?
The full form of FDI is Foreign Direct Investment. FDI refers to the investment made by a company or individual from one country into another country. It involves the establishment of business operations or the acquisition of assets in the foreign country.
Distinguish between foreign direct investment and portfolio investment?
Foreign direct investment is the provision of capital into a company or project by a financier who is from a foreign country. In portfolio investment, anyone can invest in the portfolio, whether or not he is from a local company or a foreign company.
How does a country earn foreign exchange?
A country earns foreign exchange primarily through exports of goods and services, attracting foreign investments, and tourism revenue. When foreign buyers purchase domestic products, they pay in their own currency, which is converted into the local currency, generating foreign exchange. Additionally, foreign direct investment and remittances from citizens working abroad also contribute to the inflow of foreign currency. Overall, a positive balance of trade and favorable investment conditions are key to increasing a country's foreign exchange reserves.
What are the Disadvantages of foreign aid to developing countries?
A disadvantage of foreign aid to a developing country might be the amount of money used for foreign aid when domestic aid is needed. It can be known up front if the aid will benefit the developing country.
What factors can discourage foreign direct investment?
Insecurity in a country
Company that handles foreign investments What is this called I am looking into this to see if they have it in my country?
Foreign Investment Enterprise. It can participate in the foreign economy.
