Essay - Free essays!
Login to an existing account
GCSE essays
A Level essays
University essays
Why join?
Essay quality

Search forums
About us
Contact us


Foreign Direct Investment Free essay! Download now

Home > A Level > Business studies > Foreign Direct Investment

Foreign Direct Investment

You can download this essay for free. All you need to do is register and submit at least one of your essays to us.

Or you can purchase this essay for just $2 instantly without registering

Downloads to date: N/A | Words: 4014 | Submitted: 18-Sep-2011
Spelling accuracy: 71.3% | Number of pages: 10 | Filetype: Word .doc

This is what the first 3 pages of the essay look like

Foreign Direct Investment essay previewForeign Direct Investment essay previewForeign Direct Investment essay preview


Determinants of FDI


Determinants of FDI


Globalization is an inevitable and irreversible process, and dealing with the imperatives of globalization capitalizing on its positive aspects and mitigating the negative ones is perhaps the most important challenge for today. Globalization has enhanced the opportunities for success, but it has also posed new risks to developing countries.

Globalization has many faces; however, globalization is first and foremost comprehended in economic and financial terms. In this sense, it may be defined as the broadening and deepening linkages of national economies into a worldwide market for goods, services and especially capital.

Perhaps the most prominent face of globalization is the rapid integration of production and financial markets over the last decade; that is, trade and investment are the prime driving forces behind globalization. Foreign direct investment (FDI) has been one of the core features of globalization and the world economy over the past two decades. It has grown at an unprecedented pace for more than a decade, with only a slight interruption
during the recession of the early 1990s. More firms in more industries from more countries are expanding abroad through direct investment than ever before, and virtually all economies now compete to attract multinational enterprises (MNEs).

This trend has been driven by the complex interaction of technological change, evolving
corporate strategies towards a more global focus and major policy reform in individual countries. The past two decades have witnessed an unparalleled opening and modernization of economies in all regions, encompassing deregulation, de-mono-polization, privatization and private participation in the provision of infrastructure, and the reduction and simplification of tariffs. An integral part of this process has been the liberalization of foreign investment regimes. Indeed, the wish to attract FDI has been one of the driving forces behind the whole reform process. Although the pace and scale of reform have varied depending on the particular circumstances in each country, the direction of change has not.

Most developing countries were starting to look to FDI as a source of capital when flows of official development assistance (ODA) declined sharply in the 1990s. FDI usually represented a long-term commitment to the host country and contributed significantly to gross fixed capital formation in developing countries. FDI had several advantages over other types of capital flows, in particular its greater stability and the fact that it would not create obligations for the host country. FDI can play a key role in improving the capacity of the host country to respond to the opportunities offered by global economic integration, a goal increasingly recognized as one of the key aims of any development


Nowadays, virtually all countries are actively seeking to attract FDI, because of the
expected favorable effect on income ...

Download this essay in full now!

Just upload at one of your essays to our database and instantly download your selection! Registration takes seconds

Or you can download this essay for $2 immediately without registering

Comments and reviews

Reviews are written by members who have downloaded the essay

No comments yet. If you download the essay you can review it afterwards.