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Essay / Research Paper Abstract
This 12 page paper considers the impact of FDI. The paper argues that foreign direct investment was a major influence in the development of many Asian countries attained developed nation status as well as a factor in the Asian currency crisis of the 1990's. The paper then considers the impact of FDI in Morocco looking at the relationship between FDI export levels and GDP growth. The bibliography cites 7 sources.
Page Count:
12 pages (~225 words per page)
File: TS14_TEFDIdevl.rtf
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Unformatted sample text from the term paper:
country may give the company an advantage with lower costs and lower obligations which are greater than increased transportation costs. If the compnay are also planning on selling within that
country the transportation costs may also be reduced. Empirical literature appears to indicate that developing countries can see their economies, a as a knock on effect, their standard of living
improved with the presence of FDI . By looking at the impact of FDI on developing countries we may apricots the fill advantages as well as the potential costs
either direct or indirect that allowing FDI may have in the local economies. A driver for FDI and also a result of FDI has been increased globalisation (Buckley and
Pervez, 2004). The argument is that developing contires have been given a helping hand to develop their economies where FDI is present, speeding up the pace of development. The general
view, as seen with research such as that by the OECD as well as UNCTAD both indicate that these are positive benefits (Erdilek, 2003). However there is also some research
that indicates there are many disadvantages for the host nations of FDI, this is also present in some of the OECD research and studies by Moran (1998, 2001) and Lipsey
(2002) (all quoted Erdilek, 2003). The view of FDI can be seen as changing, the view was traditionally seen by both investors and the host nations as a threat
until the 1980s (Investors Digest, 2004). Multinational enterprises (MNEs) were wary of investment with the potential perpectivr that may be formed of their ocmpnay in this situation.. There was a
view that development may be forced too quickly and that aspects such as the political influence that the investing compnay could have on the national government of a poor country
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