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Essay / Research Paper Abstract
This 4 page paper outlined 4 different concepts in international trade. The first half of the paper examines direct foreign investment (DFI),what it is and the advantages and disadvantages associated with it. The second part of the paper outlines what is meant by invisible exports, trade restrictions and privatisation.
Page Count:
4 pages (~225 words per page)
File: TS14_TEtradei.rtf
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Unformatted sample text from the term paper:
out by explaining these terms, before looking at why they happen and how they may impact on the parties and countries involved. Direct Foreign Investment is often known colloquially as
DFI. 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. Indirect investment is
where an investment is made in a less direct manner, with money being used to purchase shares or the provision of funds for bonds.
DFI will often take place where one country has a need that it cannot meet, either financial, or knowledge based, and another company fork another country has the
resources they need. The combination of the two parties then creates businesses. 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. During the 1980s much of the globe enjoyed economic expansion resulting
in increased standards of living and higher than before disposable incomes. This also increased the funds which were available for investment. Much of this money went to Asia due to
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