In the post-war era, the qualitative and quantitative intensification of economic activity has resulted in the rise of extraordinarily capital nimble multi-national corporations (MNCs) with the capacity to expand into all corners of the globe. Moreover, this intensification of capital flows into and between countries has also raised many concerns, one of which is the fear that foreign direct investment, a way for MNCs to move their capital into what is often less economically developed poor countries, is actually a new form of imperialism aimed to exploit the domestic economies of these host-countries while offering little benefits in return. However, I believe that foreign direct investment (FDI) is not a form of imperialism because, if properly …show more content…
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