Disadvantages Of Foreign Direct Investment

That being the case, immigrants are influencing the economy of their host country. There are many benefits of immigration for the economy, among them are increasing the economic growth of the country they’re immigrating to in terms of increase in GDP, increasing the country’s income by paying taxes, and their contribution to innovating technologies that can benefit their host country’s economy. In the end, immigrants play a crucial part in the economic well-being of the United States of America. Additionally, if many immigrants are given legal status or citizenship, there will be even more advantages that can be

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.

As the rapid growth rate of economic environment in current world market, economic globalization is affecting emerging countries economic development by increasing oversea business activities such as FDI, export-import, also the culture communication between different countries are interacting and influencing each other during diplomatic business activities. The globalization also simulates innovation and creativity in the emerging countries; it encourages the spirits of entrepreneurship and drives the emergence of innovative business models. China as one of the fastest growing countries in efficiency-driven economy system, where economic growths are based upon manufacturing in domestic markets, outsourcing, and exporting products to foreign

Though protectionism has a lot of advantages but in long term protectionism has many dark aspects as it specifies the trade of the country whereas free trade opens the barriers of the trade which welcomes international investors an firms to invest in country that helps in increasing the economy of the country. At present stage Pakistan needs protectionism as it has growing industry but after few time it should open the trade for all of the countries. In nutshell, both of the thoughts have their own advantages and disadvantages according to the conditions and circumstances. Till a specific time of progress a country should follow the protectionism and then it should follow the free trade.

The developing countries have achieved this progress by reforming their policies, institutions, and infrastructure. The existing market structure, the market potential and the expected increasing returns are the leading criteria for firms for investment. With the growing global competition, the world economy provides a large source of supply and demand, so that international trade increases the possibilities for an adequate through specialization and complementary strategies. Economies of location can be seen as a prominent factor in globalization of industries. The transnational co-operations (TNC) are important market players in world trading system.

In the contemporary society, there are an increasing number of people involved in the globalisation. I choose the topic of international trade. And in the following paragraphs, I am going to introduce what is international trade, other possible benefits of trading globally and the bottom line. (Heakal 2015) Thanks to the international trade that allows us to expand the market for goods and services.

Globalisation and operate business globally are significant issues for contemporary organisations. Global business is refers as an economic activity that operates in different countries that selling and buying goods and services by people (McWilliams 2010).Businesses are incentivized to sell products and services in foreign markets with technology advancing so fast and international trade expanding. The global business strategy vision is to develop far beyond the borders of their countries and allow businesses to grow (Chan & Justis 1997).Through global business, it helps enterprises reduce costs, expand their market share and become more competitive. There are two impact of global business. One of the impact is multinational corporations

there exists a preferential bias for Saudi nationals in matters of employment and business. There has been a tremendous growth in GDP due to rise in revenues from oil as a quarter of the world 's oil reserves are in Saudi Arabia. There is a demand for taking measures and effective implementation towards environment regulations. The identification of major weaknesses and the government’s measures for them is helping towards the transformation of Saudi Arabia into a developed nation with a diversification of

(Jun & Sight, 1996) First, China has immense development in relevant infrastructure to attract inward foreign direct investment. It is the fact that the availability of physical infrastructure great influences the decision of investment especially in a foreign land. Company will have more advantage to invest

One of the most important and sensitive areas for developing countries is foreign direct investment (FDI). It is now defined as not only a simple transfer of money, but as a mixture of financial and intangible assets such as technologies, managerial capabilities, marketing skills and other assets. There is a major debate in the literature regarding the impact of FDI on economic growth. FDI is defined as an investment involving the transfer of a vast set of assets, including financial capital, advanced technology and know-how, better management practices, etc. This investment is carried out by an entity (a firm or an individual) in foreign firms, involving an important equity stake in, or effective management control (UNCTAD, 2007).

The United States economy has been through many reformations to get where we are today. Our economy is on a global scale, which is affected by many other countries. With the growth of the flat world idea, we have become a global economy that needs other countries to prosper. Either we are selling or buying goods from other countries to keep Americas’ economy growing. “A country should produce and export those goods and services for which it is relatively more productive than are other countries, and import those goods and services for which other countries are relatively more productive.”