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Essay / Research Paper Abstract
This 11 page paper looks at the impact of foreign direct investment on developing countries. The paper starts by looking at the theory, why developing countries may want to attract FDI and what they may gain from it. The paper then looks at two countries; India and French Guiana to asses FDI in the real world. The bibliography cites 9 sources.
Page Count:
11 pages (~225 words per page)
File: TS14_TEfdidev.rtf
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Unformatted sample text from the term paper:
improve the standard of living. The solution has been seen by many in terms of increasing economic activity to create more wealth on a national and governmental level as well
as for individuals. There are many arguments as to whether this is really an improvement, but if we assume it is the tool of foreign direct investment (FDI) may be
seen as playing an important role in the development of a developing nation. Foreign Direct Investment is often known colloquially as FDI. This is where there is an investment
made directly in a country by a foreign government, company or other organisation. By direct investment it means that money is used to create facilities in that country these may
be manufacturing facilities or assembly facilities, or some types of physical presence, usually developing a green field site. An example of direct investment may be an American electronics company
that set up a manufacturing plant Asia. It is easy to see why direct investment takes place between developed and developing countries. The developing countries need the additional income that
the investment will bring, and have a comparative advantage with cheaper labour costs and possibly less expensive environmental protection laws. It appears to be a situation where both side benefit.
Direct investment is seen as a way of increasing the wealth of a country as well as a company. With the building or development of facilities as well as
the subsequent production, there will be a bringing in of foreign currency. This will be in terms of the wages that are paid to the workers, the income it creates
with the other inputs that are sources locally, such as income for local suppliers. This then puts funds in the local economy with a trickle down effect taking place.
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