ipl-logo

Advantages And Disadvantages Of Fdi To The Host Country

1264 Words6 Pages

FDI may give the benefits to the host country and also home country, but there are also some disadvantages of it. Let’s discuss. The benefit of FDI to the host country is that the resources can be transfers which can give a good effect. The resources can be said that such as capital, technological and managerial skills. The host country can receive the resources given by the home country, thus it can improve the efficiency of operation and economic development. FDI may inject the amount of capital to the host country in order to let the host country to further development. The host country hasn’t used the resources before. Therefore, home country may have the technological advancement, so it can help to the host country to improve their operations as well. In the aspect of managerial skills, the workers may choose by the foreign employer to go for training in which it can improve the skills of workers. For example, the ways of using the latest technology. FDI may benefits to the host country and create the employment effects. FDI brings benefits to the employment and more available jobs to the employees. For example, Toyota has three large plants in Thailand which may bring the thousands of jobs available in Thailand. Thus, it can improve the economy situation. The effect of the FDL on balance of payment account is putting the government attention to the political issues. The government may concern about whether the deficit in which is the outflow of the money to other

Show More
Related

  • Econ211 Unit 3

    896 Words  | 4 Pages

    However, the policy alone is not sufficient to attain economic growth and consequently needs to be used with fiscal policy at the same time. .The implementation of the policy, however, are in these steps. Firstly, the supply of money in the economy is reduced because it can be done overnight by raising the interest rate.

    Read More

  • Federal Reserve Tools Essay

    462 Words  | 2 Pages

    Lastly, suppose the Federal Reserve purchases $10 billion worth of foreign currency in exchange for deposit accounts at the federal reserve. I will show the changes that result from this transaction on the FED’s balance sheet. The tool used most often by the FED is the open markets operations

    Read More

  • Explain How Does The Federal Government Regulate The Economy

    279 Words  | 2 Pages

    How does the federal government regulate the economy for the benefit of the public? Discuss specific policies and programs, including their effects. The federal government has many programs and abilities to regulate the United States economy. On of which is the fiscal policy which allows government to raise and spend money.

    Read More

  • Social Care Values

    795 Words  | 4 Pages

    Funds is accounted for and reported to the government to ensure appropriate allocation and decrease fraudulent

    Read More

  • Essay On Federal Debt

    704 Words  | 3 Pages

    National Debt The growing national deficit is a looming problem in the United States now more than ever. The national debt is constantly increasing and government spending is out of control. If these issues are not solved, then they could spell disaster for the nation’s economy. But an even bigger concern is how our Government plans to balance the budget and pay off the Federal Deficit.

    Read More

  • Advantages And Disadvantages Of Global Trade And International Trade

    998 Words  | 4 Pages

    International trade is also knows as a globe trade which give the country opportunity to expands their markets for both good and services that otherwise may not have been available in other countries. This type of trade also give advantages for world to rise the economy in term of prices, supply and customer demands, affect and are affected by global events. All of the good and services can be found on international market. International trade will involve two types of process which be export and import. Export is a function of international trade in which the goods produced in a country will be sent to another country for future sale or trade.

    Read More

  • Personnel Budgeting In Business

    1639 Words  | 7 Pages

    Budgeting can be defined as a solid process to decide the estimate of revenue and expenditure for the specific time period. This definition of budget serves for all, country, city, state, business or personal matter. It is observed that, each successful company never moves forwards without deploying budget process (Al-Shawabikah, 2000). So, talking about Personnel Budgeting, it is one of the crucial aspects of any business to keep labor or personnel budgeting in the mind at the start and end of the year to maintain or increase productivity and profitability of the business.

    Read More

  • Disadvantages Of Multinational Corporations

    1164 Words  | 5 Pages

    Multinational corporations can be defined as enterprises operating in several countries but are managed from their home country. Generally, any company that acquires a quarter of its revenue from operations outside of its home country is considered to be a multinational corporation. Today the multinational corporations have a radical effect on the economic system all over the world. This is due to the growth of international business of the multinationals, which has tremendous effect on the traditional forms of international trade and capital flows for economies at large. In the world economy they create a powerful force.

    Read More

  • Essay On Advantages And Disadvantages Of Multinational Corporations In Developing Countries

    833 Words  | 4 Pages

    Even the international companies bring considerable economy growth to developing countries such as technology transfer and job opportunity. Nevertheless, the multinational corporations also bring problems to developing country like harm human right. However, it is believed that multinational companies bring advantages morn than disadvantages. The developing country should increase the economy in the short term because competed economy can enhance competitive strength in the world and ameliorate the life of developing country people such as using additional finance develops capital

    Read More

  • Disadvantages Of Economic Growth

    1571 Words  | 7 Pages

    Along these lines, unemployment may decrease, as this has different favorable circumstances, for example, lower government using on profits and less social issues. However, this phenomenon includes a number of different expenses. Firstly, if economic growth is unsustainable and is higher than the long run pattern rate, inflations are liable to be seen. An increase in economic growth could prompt an equalization of issued installments. In case the expanded customer expenditure causes further development, there will be an increase in the import sector.

    Read More

  • Advantages And Disadvantages Of Migration

    769 Words  | 4 Pages

    Throughout human history, migration of human beings is a pre-requisite of human progress and development. Without migration, human being would be doomed to an existence worse than that of the animals. A lot of people tend to migrate to seek a better life. The migration of people from one country to another country is not a new phenomenon. Since early days of colonialism, the colonial powers travelled around the world in search for raw material and new territory.

    Read More

  • Advantages And Disadvantages Of Globalization In The UAE

    1785 Words  | 8 Pages

    Challenge of modernization and globalization in the UAE society Introduction The UAE is renowned for its rich cultural heritage heavily manipulated by Arab and Islamic traditions. UNESCO has particularly acknowledged the Emirate of Sharjah as a fascinating emirate that has single handedly taken measures in protecting the rich cultural heritage of the Arabs. A classic example is anchoring the Dubai Shopping Festival in cultural values that are local and traditional. It should be noted that the primary aim of the festival is to attract tourists from all over the world.

    Read More

  • Advantages And Disadvantages Of Globalization In Developing Countries

    1006 Words  | 5 Pages

    Globalization is a process of linking the world through many aspects, from the economic to the culture, the political. in different nations. This process uses to describe the changes in society and in the world economy, by creating a linkage and increasing exchange between individuals, organizations or nations in cultural perspective, economics on global scale (Globalization 101, n.d.). A process of creating many opportunities but also causes many challenges for all the nations in the world, particularly for developing countries. There are so many advantages that globalization brings to developing countries like free trade, technology transfer and reducing unemployment.

    Read More

  • Advantages And Disadvantages Of Globalization In Nigeria

    1458 Words  | 6 Pages

    This chapter discusses the review of relevant literature. As part of this research, which includes articles seminar paper, newspapers , textbooks , etc. The review materials are grouped under the following headings 1.

    Read More

  • Roles Of Money In Macroeconomics Essay

    1772 Words  | 8 Pages

    The fiscal policy is primarily an instrument in the hands of the government whereby it estimates its revenues and expenditures in the economy. This is a very important tool as it would define the flow of money from different sources, indicating the level of activity in the economy. It also defines the broad policies of the government indicating the outwards flow of money in to different sectors of the economy to maintain the overall health of the economy and fulfill its social goals. Apart from the fiscal policy every country has monetary policy at its disposal.

    Read More

More about Advantages And Disadvantages Of Fdi To The Host Country

Open Document