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Essay / Research Paper Abstract
This 18 page paper examines the impact of foreign direct investment on developing countries. The paper stars with a consideration of the two approaches, the beneficial model and the malign model. These models are considered and then the paper looks at how these are seen in the real world using numerous examples. The bibliography cites 20 sources.
Page Count:
18 pages (~225 words per page)
File: TS14_TEdevFDI.rtf
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Unformatted sample text from the term paper:
increase of only 2%. However, the FDI to developed countries is dropping and the increase is mostly due to a large increase of FDI to developing countries, the 2004 figure
of $233 billion going to developing countries was up 40% on the 2003 figure (African Business, 2005). This appears to indicate that there is an attraction to the placing of
FDI in developing countries and at this level of increase the developing countries must also believe there are benefits. To assess the impact FDI has on developing nations we will
look firstly at an overview of the two basic approaches and then consider haw these are seen in the real world. There are arguments for the use of FDI
as a benefit to the developing countries citing increased income that can be used for development as well as the transfer of knowledge for the countries own development of the
industry. However, there are also many disadvantages cited, it has been argued that FDI means a country does not develop naturally, but under the pressures of other cultures, either political
or commercial. The developing countries may be weaker and therefore more susceptible to the influences which may not be in their long term interests and ethnologist may argue that there
may be a destruction of culture and local values. 2. Theoretical Models for FDI in Developing Countries Sing and Jun (1995) looked at the reasons behind FDI taking place into
developing nations and identified many factors that would influence the decision, these included aspects such as political risk, the existing business conditions, and the macro-economic conditions. Testing different hypothesises they
argued that there is a pattern that FDI is more likely to go to a country with a history of FDI, where there are not traditional FDI flows, or low
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