Fdi and Mnc

Foreign Direct Investments and Multinational Corporations Introduction In a globalised cosmos and economy, contrasted direct investment (FDI) flows have boomed dramatically in recent decades. Factors contributing to the suppuration of FDI atomic number 18 rapid growth in technological advancement, low interest funds from discipline banks, bilateral investment treaties and the welcoming developing countries have habituated FDI its importance in helping the economy growth. This led to the rapid growth of FDI flows around the world in the last 20 years period. FDI outflows increase from $53.7 billion in 1980, to a amazing $1.4 trillion in the year 2000 (Brooks et al, 2003). Foreign direct investment (FDI) involves the real investments or ownership in the land, inventories, factories and capital goods in outside countries where investor have control and authority over the invested capital. Ex ampereles of FDIs involves investors purchasing a minimum of 10% of the firms air or more, setting up a wholly own subsidiary company, joint venture with another firm and unite or acquisition of another company. Major market players who are always on the lookout for investiture in foreign countries are multinational corporations (MNC).

Multinational corporations (MNC) plays an important role in bringing capital and employment to the host countries and since a few decades back, MNCs took a great amount of interest in investing their business in foreign markets because of the various advantages in foreign countries over their home country. In this essay, I will be focusing on the determinants, characteristics, cost and benefits for host and investing countries for FDI and MNC. Determinants & Characteristics There are various reasons for FDI to arise but unmatched major reason is that investors foresee promising returns of profits of their investments in foreign nations before they invest. Every investor wants to maximize their returns as practically as they can. The determinants of FDI have been... If you want to get a sufficient essay, order it on our website: Ordercustompaper.com

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