What are the advantages and disadvantages of foreign direct investments?
- causes a flow of money into the economy which stimulates economic activity
- employment will increase
- long run aggregate supply will shift outwards
- aggregate demand will also shift outwards as investment is a component of aggregate demand
- it may give domestic producers an incentive to become more efficient
- the government of the country experiencing increasing levels of FDI will have a greater voice at international summits as their country will have more stakeholders in it
- inflation may increase slightly
- domestic firms may suffer if they are relatively uncompetitive
- if there is a lot of FDI into one industry e.g. the automotive industry then a country can become too dependent on it and it may turn into a risk that is why countries like the Czech Republic are "seeking to attract high value-added services such as research and development (e.g.) biotechnology)"A
A measure of foreign ownership of productive assets, such as factories, mines and land. Increasing foreign investment can be used as one measure of growing economic globalization. Horizontal foreign direct investments happen when a multinational company carries out a similar business operation in different nations.
Thomas L. Brewer has written: 'Foreign policy situations' -- subject(s): International relations, Foreign relations, Research 'The multilateral investment system and multinational enterprises' -- subject(s): Finance, Foreign Investments, International business enterprises, Investments, Foreign 'Foreign direct investment in developing countries' -- subject(s): Case studies, Foreign Investments, Investments, Foreign 'Political Risks in International Business'
Walid Hejazi has written: 'Foreign direct investment and domestic capital formation' -- subject(s): Capital investments, Economic policy, Foreign Investments 'Degree of internationalization and performance' -- subject(s): Banks and banking 'Modelling links between Canadian trade and foreign direct investment ='
What have many economists determined are the results to an underdeveloped when direct foreign investments are directed to developing high technology products?
Robert E. Lipsey has written: 'Measures of Transnationalization of Economic Activity' 'Foreign direct investment and the operations of multinational firms' -- subject(s): American Investments, Foreign Investments, International business enterprises, Investments, American, Investments, Foreign 'Interpreting developed countries' foreign direct investment' -- subject(s): American Investments, Foreign Investments, Investments, American, Investments, Foreign, Saving and investment 'Foreign production by U.S. firms and patent firm employment' -- subject(s): American Corporations, American Investments, Corporations, American, Foreign trade and employment, Industrial productivity…
The UN Conference on Trade and Development (UNCTAD) determined that in 2011, Liberia had the greatest influx of money due to foreign direct investments, or FDI. The World Trade Organization also regulates trade between many countries. Both of these groups would be good places to start investigating FDI.
1 describe a direct cold water system and list 2 advantages and 2 disadvantages of this type of system?
Advantages and Disadvantages of primary data are: Advantages 1. Data is basic 2. Unbiased information 3. Original data 4. Data from the primary market/ population 5. Data direct from the population. Disadvantages. 1. Large volume of data. 2. Huge volume of population. 3. Time consuming 4. Direct and personal intervention has to be there. 5. Raw data.