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Essay / Research Paper Abstract
A 7 page paper providing an overview of foreign direct
investment (FDI) and then discussing its benefits and disadvantages. FDI does have its
detriments, but its advantages are compelling. Governments' caution combined with corporate
integrity can result in a highly positive environment in which the living standards of the local
population can be positively and permanently enhanced. Bibliography lists 10 sources.
Page Count:
7 pages (~225 words per page)
File: CC6_KS1FDi.rtf
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Unformatted sample text from the term paper:
the experience of those such as Singapore that have won official designation as "mature" have demonstrated that the fastest route to that achievement likely will be influx of foreign direct
investment (FDI). As capital has become so easy to move across political borders, FDI has come to be characterized as that type of foreign investment in a nation that
is less mobile (Beresford, 2000). Those nations receiving it seek more; those not receiving FDI actively court the worlds wealthier nations to invite
them to come for business. The effect of FDI is that it stimulates economies to a greater degree than they could be affected without it. It can generally
be seen as being a good thing, but it does have its detractors, as well. Overview
Beresford (2000) writes of the situation in South Africa, where individual savings rates are lower than the government would like to see. Were citizens to save more of
their money, there would be more on deposit with financial institutions and therefore available for lending. Among the implications of South Africans not saving greater portions of their income
is that one in which there is not sufficient capital available to fund the industrial initiatives that could create jobs and further stimulate the economy with the wage effect.
A single new job does not affect only the worker filling it. His wages are redistributed to the local community in the form of prices paid for goods and
services, a portion of it is paid to the national government in the form of taxes, and the results of his work contribute to the growth of the national economy.
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