The Positive Impacts Of Foreign Direct Investment In Bangladesh

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A Foreign Direct Investment (FDI) generally means an investment made to acquire long-term interest in enterprises that operate outside of the economy of the investor. Open economies (like Bangladesh) with a vast workforce and good growth prospects gradually tend to attract larger amounts of foreign direct investment than closed, highly regulated economies. The third world countries are considered the best places for the investors for foreign direct investment. Foreign direct investment has become a popular as well as controversial issue in international economy. FDI generates economic benefits to the recipient countries through positive impacts on its economy resulting from physical capital formation, transfer of technologies and increased …show more content…
So FDI can create new jobs in the companies or projects in the targeted country. Political instability reduces the rate of foreign direct investments because foreign investors don 't want to bear risks of loss. (Rothgeb, 1984) So from the politico-economic scenario, the government will be focused on ensuring sound political environment to attract the investors through a variety of measures. To ensure sufficient employment and better opportunity for the citizens, the government of the Bangladesh typically favors foreign direct investments, which can also increase their popularity as a political party.
Within the spectacular wave of global corporate activity of MNC 's and TNC 's, a third world country is no longer lacked foreign direct investments. FDI can transform a country 's socio-economic scenario within shortest possible time if it is used perfectly. (Johnson, 2006) In the context of Bangladesh, FDI cannot simply pull out overnight but stabilize our economy by providing fund, technical know-how, infrastructure development, and managerial
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Here the political economy is that they use to seek some third-world countries which are in their good relation rather than to have a good business climate. (Hossain, 2013) It is the way to keep others within the dominance of one 's. Bangladesh formulated its first industrial investment policy in 1973 and in 1999, an investment treaty in between Bangladesh and 20 countries worldwide had conducted such as USA, Sweden, Denmark, France, Germany, Netherlands and United Kingdom who are the major development partners of our country till now. (Rahman,

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