supplements the most dominant type of investment and been served as a supplementary source of financing in many countries. This chapter discusses FDI theories and various empirical studies that have been carried out on the motives of FDI. 2.1 Theories on motivation of FDI There are many theories, which attempt to explain the motives of FDI. These theories are important steps towards the development of the systematic framework for the emergence of FDI. Hence, this part reviews theoretical literature on the motives of foreign direct investment. The leading theories in identifying the motives of…
Foreign Direct Investment The selection of Foreign Direct Investment (FDI) for a key term is tied into the importance and influence that FDI holds as it relates to the effects that it projects on foreign economies, culture and the political scenes. When financially well endowed organizations, enterprises, or even governments, invest in foreign markets, by either crafting supplier/buyer relationships with foreign enterprises, acquisitioning foreign enterprises, or basically establishing new…
A corporate investment in healthcare could drastically reduce infant mortality rate, average life expectancy, just to mention a few. Furthermore, a corporate investment in education can increase the level of illiteracy which in the long run reduce the level of poverty in the country. Needless to say, FDI can contribute to the reduction in poverty. Given the increase importance of FDI as a source of capital for development in developing countries " (Jenkins R. n.d), and the emphasis of…
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…
Global Competitiveness and Foreign Direct Investment Global competitiveness assesses a countries productivity and return on investments by using a number of benchmark measurements. The different measurements expose opportunities for Foreign Direct Investments (FDI) from outside countries or entities (Hill, 2009). As organizations see opportunities to in other countries to invest and increase productivity for their firm and the country it can operate in, FDI becomes mutually beneficial. The…
INTRODUCTION TO FOREIGN DIRECT INVESTMENT Foreign direct investment is one of the major monetary sources for economic development. Foreign companies invest in India to take various advantages such as cheaper wages and the changing economic environment of India. With the liberalization of Indian economy in 1991 under foreign exchange management act (FEME), FDI has steadily increased in India. According to the financial times (2015) china and US were overtaken by India in the marathon of the top…
FOREIGN DIRECT INVESTMENT AND NIGERIA ECONOMY: AN EMPIRICAL RE –EVALUATION Abstract The study examined the effect of Foreign Direct Investment (FDI) on the Nigeria economy. Secondary data were collected through extraction from the Central Bank of Nigeria’s statistical bulletins. The data collected covered 14years (2000 – 2013) which encompassed Foreign Direct Investment (FDI) and Foreign Reserves (FR) (as independent variables) and Gross Domestic Product (GDP) (as the dependent variable)…
New York in the United States but is planning to move their headquarters to the United Kingdom instead. The move will cost America approximately 2,500 jobs by losing these headquarters. Although this is the case, it will save AVP money due to the decreased jobs needed to man the headquarters and the ability to be closer to its commercial operations. It is estimated by the company that they will need 7 percent less people to run the new headquarters. The CEO of AVP assures Americans the move is…
countries and the subsequent occurrences of recurrent exchange rate volatilities around several economies called for a thorough investigation on the impacts of exchange rate volatility on trade, investment and on other macro-economic variables. For example, after countries started embracing the new floating exchanges regime, real and nominal exchange rates were suffered periods of substantial fluctuations, international trade volume and…
Intro Due to Privatization law changes by the Brazilian government, a new era dawned in Brazil in the 1990’s. This breakthrough in foreign direct investment from firms in the United State in Europe, caused a huge surge in economic growth that lasted nearly a decade. This Surge in economic growth slowed but Brazil over the years has continued to be a country to watch for new innovations in the power production industry. Until recent corruption was discovered, Brazil was expected to surpass many…