ipl-logo

Disadvantages Of Foreign Direct Investment

953 Words4 Pages
bulb-icon

Recommended: Foreign investment in pakistan

Foreign direct investment (FDI) means to participation by a one country into another country. In case of Pakistan when other countries invest in many sectors like agriculture,mining,food,sugar,textile…etc. This normally include participation in management, joint-venture, transfer of technology and expertise. Two main types of FDI are used: inward foreign direct investment and outward foreign direct investment, and resulting in a net FDI (positive or negative) inflow.
Foreign direct investment (FDI) include foreign ownership of productive assets, such as textile factories, mines and land. Due to increasing foreign investment one country can compete an international level and hence FDI is a important measure of increasing globalization.
Any shape of Investment brings a progressive outcome in an economy, May on national level or international level. Now a day’s foreign direct investment (FDI) is very important part of international economics.
IN case of Pakistan where markets and economy are developing so in this case Pakistan is much need of foreign investment. Because of foreign investment Pakistan increases economic growth, Developing and enhancing the managerial skill, employment level, and technology and increase standard of living. Pakistan that is developing country is need that foreign investor wealth come there country. Pakistan develops policies to attract the foreigner investor to increase the GDP, PCI etc. Many benefits of FDI is given below
1. Augmenting
Show More
Related
725 Words | 3 Pages

8. Some multinationals replicate their production processes in foreign facilities located near large customer bases. This is categorized as horizontal foreign direct investment (FDI). An alternative is to export to a market instead of operating a foreign affiliate in that market. The trade-off between exports and FDI involves a lower per-unit cost for FDI (no trade cost) but an additional fixed cost associated with the foreign facility.

Read More
229 Words | 1 Pages

Huba 1 American companies are continually striving to have the most competitive price for their products. As always, having low prices always comes with a cost some way or another. One way companies lower production costs is by moving production to another country. When companies move production to other countries, many problems can arise. For instance, when a company moves they must lay off hundreds, sometimes even thousands of employees.

Read More
1158 Words | 5 Pages

Furthermore, the culture of the nation should be considered, as it can have a considerable effect on the investment outcome. Additionally, investing in Pakistan is a risky venture due to the instability of the country and the lack of reliable infrastructure. However, with the right strategies and investments, companies can take advantage of the low cost of labor, skilled workforce, and government incentives. Additionally, the country has great potential for growth, with its large population and growing middle class. By taking the time to understand the cultural, political, and economic dynamics of the country, businesses can make informed decisions and develop a successful strategy to enter the

Read More
497 Words | 2 Pages

However, if properly managed, foreign direct investment not only helps to invigorate an economy in the aggregate, but can also improve the living standards of the domestic population. Some of these ways that it is able to do this include: 1) providing a key source of much-needed capital into poor host countries so that these countries can industrialize and modernize, 2) creating more and better jobs for the domestic work force as well as improving the quality of the human capital of these workers through labour up-skilling, 3) transferring technology, management techniques, and professional skills into the domestic economy to help the host countries realize efficiency gains in their economies so that they can become much more productive, and 4) stimulating both domestic consumption as well as production in order to unlock new markets for goods and

Read More
249 Words | 1 Pages

As children grow up into adults, middle school education plays a significant role in developing teenagers’ cognition. During this period, both boys and girls need attention, encouragement, and recognition. However, gender bias in education has historically been a common phenomenon. For example, girls in the class receive less attention from teachers than boys. An in-depth analysis from Peggy Orenstein’s “The Daily Grind: Lessons in the Hidden Curriculum” and Karen Stabiner’s “

Read More
1404 Words | 6 Pages

First and foremost, one must acknowledge the plainly visible fact that the Chinese economy has grown exponentially since the process of integration into the global economic system began. China 's comparative advantages, particularly in the labor sector, has transformed it into the second largest recipient of FDI in the world.1 Over the course of the last 20 years, exports have grown approximately 17.1 percent per year.2 This ultimate result of this investment and trade has been an overall growth rate 8 percent per annum,3 which would have been completely unattainable without the country 's engagement in globalization. Foreign investments have

Read More
998 Words | 4 Pages

International trade is also knows as a globe trade which give the country opportunity to expands their markets for both good and services that otherwise may not have been available in other countries. This type of trade also give advantages for world to rise the economy in term of prices, supply and customer demands, affect and are affected by global events. All of the good and services can be found on international market. International trade will involve two types of process which be export and import. Export is a function of international trade in which the goods produced in a country will be sent to another country for future sale or trade.

Read More
801 Words | 4 Pages

I grew up in a small country in Central America named El Salvador. As a kid I dreamed of moving to the U.S because my father was over there working, also because it looked beautiful in the movies and I wanted to see the tall buildings that rose above the clouds. But my way of thinking still had not developed enough to be able to understand the real reason people move to the U.S and the effects it had on the country. Two reasons people move to the U.S are freedom and education; two effects are diversity and competition.

Read More
1047 Words | 5 Pages

CHAPTER 1: INTRODUCTION 1.0 Introduction This study conducted to investigate the impact of foreign direct investment (FDI) on economic growth in Malaysia for the period 1980 – 2011 using the annual time series data. Foreign Direct Investment (FDI) and Gross Domestic Product (GDP) are the main determinant of economic growth on any country (Pradeep, 2011). FDI can be defined as a cross border corporate governance mechanism through which company obtains productive assets in another country and prolonged to include the investment which made to attain lasting interest in enterprises operating outside of the economy of the investor (Gopal, 2012). According to World Bank, GDP refer to the value of final goods and services that produce in a country

Read More
1164 Words | 5 Pages

Multinational corporations can be defined as enterprises operating in several countries but are managed from their home country. Generally, any company that acquires a quarter of its revenue from operations outside of its home country is considered to be a multinational corporation. Today the multinational corporations have a radical effect on the economic system all over the world. This is due to the growth of international business of the multinationals, which has tremendous effect on the traditional forms of international trade and capital flows for economies at large. In the world economy they create a powerful force.

Read More
833 Words | 4 Pages

In the past few years, Multinational Corporation has become the most important character in globalization topic. Multinational corporation means an organization that owns sale their goods or service to more than single countries are rising at this age, moreover, these corporations almost come from developed countries (Allen Sens, 2012). In 20 to 21 centuries, considerably multinational corporations have chosen developing countries like China or India for continuous their business. However, is it bring economic benefit to developing country or make that worse? The aim of this essay is to examine some arguments for and against of multinational corporations in developing country

Read More
1006 Words | 5 Pages

Globalization is a process of linking the world through many aspects, from the economic to the culture, the political. in different nations. This process uses to describe the changes in society and in the world economy, by creating a linkage and increasing exchange between individuals, organizations or nations in cultural perspective, economics on global scale (Globalization 101, n.d.). A process of creating many opportunities but also causes many challenges for all the nations in the world, particularly for developing countries. There are so many advantages that globalization brings to developing countries like free trade, technology transfer and reducing unemployment.

Read More
805 Words | 4 Pages

Nowadays, in the light of the development in technology, especially in transportation and media, trade and communication has increased rapidly among countries. This trend is called globalization. Generally speaking, globalization has its own advantages and disadvantages. The development in international trade and communication has created employment and opportunities for millions of people, but it has also made poor countries poorer. In my opinion, globalization has both positive and negative aspects.

Read More
1458 Words | 6 Pages

This chapter discusses the review of relevant literature. As part of this research, which includes articles seminar paper, newspapers , textbooks , etc. The review materials are grouped under the following headings 1.

Read More
1154 Words | 5 Pages

CALELAO, Kyla Ellen, M. SURVIVING THE CYNICAL EFFECT OF GLOBALIZATION IN THE COUNTRY “We were all humans until, race disconnected us, religion separated us, politics divided us, and wealth classified us.” Despite of the great impact of it in the advancement of our country, globalization has been threatening our lives and the worst thing is that we, Filipinos, are not aware of this threat brought by the phenomenon. The widening of the gap between the rich and poor people, a result of globalization, puts the Philippines deeper in the quicksand of poverty and also causes social injustices among men.

Read More

More about Disadvantages Of Foreign Direct Investment

Related Topics

Open Document