Globalization And Foreign Investment

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Due to globalization, the economic borders between countries have vanished around the world since the 1990s and primarily in developed countries the capital accumulation has risen. Thus, the countries can no longer isolate themselves from the rest of the world. After the large scale globalization, all countries had an effect on each other in political, economic, financial, social, cultural, and many other fields. When regional combinations were getting increasingly common together with globalization, the circulation of capital has drastically increased in synchrony with the increase in capital accumulation (Rubio, 2001). During this process while the free flow of capital has risen, trade has transformed into a more liberalized version and consumer habits have gotten to be like each other. Connections have been created among industries and businesses, cooperation between transnational enterprises has developed and foreign speculations have been started. All through this procedure, even the shut economies have opened up for direct foreign investment (Nunnenkamp, 2002). Investments have extraordinary importance as far as expanding of countries ' GDP particularly foreign investments. Foreign investment, investable assets can be characterized as moving to another country by individuals and firms. Foreign capital is characterized as technological or financial or technological and financial assets, which can be added to the economic influence in a brief timeframe, got by a country

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