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Essay / Research Paper Abstract
This 3 page paper is written in three parts. The first part looks at the way that FDI and MNC’s, as well as local entrepreneurs can help with the economic development of Vietnam. The second part of the paper considers which stage of Dunnings’ IDP framework Vietnam has reached. The last part of the paper discusses the potential lessons that Vietnam can learn from the development of other Asian nations including China.
Page Count:
3 pages (~225 words per page)
File: TS14_TEvietdev.rtf
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Unformatted sample text from the term paper:
on the commercial environment, as seen with Telstra and ANZ creating the infrastructure needed for both domestic firms making foreign direct investment (FDI) to grow. Telstra have strengthened the communication
network that is needed by business to communicate, whereas the alliance created ay ANZ brings in expertise that can be applied to help increase liquidity and the expertise in the
finance sector that may increase access to capital for investing firms both through FDI and entrepreneurial firms. The firms that set up will also need local suppliers so they can
act as the stimulus for a trickle down effect. The second form of benefit is the result of the transfer of knowledge, a key benefit of FDI is the
way the investing firms can being in knowledge/skills that is more advanced that that which is in the nation, this knowledge is used in operations and is learned by employees
who take the knowledge with them when they move employment, the ability to watch and emulate the processes is also beneficial to the local firm who learn form observation ands
by emulation. Overall, the investment aid the economy and makes the conditions more conducive to start ups within the country and as a destination for investment, creating increased revues and
increasing aggregate demand in a positive cycle. Question 2 Dunning put forward the idea of the investment development path theory, arguing that there was a link between the level
of FDI and the economic development, where the net FDI (the difference between the FDI and the absorbing FDI) is a function of the economic develop of the country. Dunning
argued that there were five stages, at the first stage epcmomic development is slow and FDI is very low. At the second stage absorbing FDI increases but FDI remains
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