Usually the finance costs go up with the provision of a longer credit period to the debtors, but it also promotes sales. S.A. Talke’s debtor days are much higher than those of its competitor. This is due to Talke relying on two major customers. These two customers have extended credit terms and represent about half of the accounts receivables at the year end. Payable Days (Payables / COS X 365) S.A. Talke Basem Year 2011 2012 2013 2013 Payable days 141 95 165 58 Payable days helps to evaluate the company’s liquidity.
There has been a basic difference in the processes of migration in developing countries from that of thedeveloped countries. In developing countries like India, migration mostly takes place not due to the so called pull forces of the destination place as usually happens in case of developed countries, but because of poverty, unemployment, natural calamities and underdevelopment at the origin place. Migration in developing countries is still viewed as a survival strategy. Poverty and prosperity both are responsible for inducing migration. While the former is mostly true in developing countries, the latter kind of migration is found in developed countries.Migration and development is a growing area of interest.
There are a number of theoretical studies that have examined FDI. According to economists, FDI is an essential component for the economic development of any country, specifically developing countries. The theories of FDI are as follows: 1. Production Cycle Theory of Vernon According to the theory of Venom, there are four stages of production cycle: innovation, growth, maturity and decline. According to Raymond Vernon, different companies come up with a new innovative product or service for local consumption and export the surplus in order to serve also the foreign markets.
The economic data impact on FDI and export on economic growth is Asian developing countries (Pakistan, China, India and Indonesia) needs to be analyzed and evaluated in that scenario. The research identifies that because of low levels of saving and investment of developing countries, the most important effect of FDI is the significant flow of FDI which is creating a market of domestic and international goods being a need of developing countries. The FDI takes various forms and enter into different sectors of an economy. Now this study finds, that the FDI increases the economic growth of developing countries through its investment by Multinational Enterprises (MNEs) are as important determinates as its
National saving includes public and private saving. Household saving typically constitutes a major part of private saving compared to private corporations (Gersovitz, 1988; Rehman, Bashir, & Faridi, 2011). Saving is an important way to improve the well-being of household. It allows households to smooth consumption in case of high income volatility and increase the opportunity to invest in physical and human capital (Ashraf et al., 2003). For households, the tradeoff between current and future consumption results in saving (Sturm, 1983).
While doing so, this paper pointed out why calls for protectionism are greater during sharp economic contractions. It then tried to explain why the increase in protectionist measure even during the sharp contraction of 2008-2009 was fairly modest. This paper then finally concluded by providing insights on why international trade/ business is essential for the development and prosperity of a country. References Bonciu, F., & Ghibutiu, A. (2011).
Determine relationship between capital flight and domestic investment 2. To determine whether capital flight is influenced by real interest rate differential, real exchange rate, inflation rate, external debt and net foreign direct investment. 3. Determine the trend of capital flight in the country 1.4 RESEARCH QUESTIONS The research will be guided by the following research questions; 1. What is the existing relationship between domestic investment and capital flight in Kenya?
The Eclectic Paradigm OLI The eclectic paradigm theory developed by Dunning (1977, 1981) is a mix of Hymer's explanations and various other theories of direct foreign investments. According to this theory, there are three determinants of foreign direct investment: 1) Ownership advantages: this refer to intangible assets which are exclusive possessions of the company and may be transferred within transnational companies at low costs (e.g., technology, brand name, benefits of economies of scale). The advantage gives either higher incomes or reduced costs. But cost of operating at a distance have additional costs, therefore to successfully enter a foreign market, a company must have certain characteristics (as the property competences or the specific benefits of the company) that would triumph over operating costs on a foreign market (Dunning, 1973, 1980, 1988). There are three types of specific advantages: a) Monopoly advantages in the form of privileged access to markets through ownership of natural limited resources, patents,
Widren and Martin’s (2002) paper focused on how developed countries can use economic instruments to manage migration from developing countries. Their abstract indicated the three themes of their paper, which entailed the framework that the “distinction between economic and non-economic” migrant motivations is often “blurred”; that the key method in reducing migration begins in the emigration countries and that trade and economic integration between the immigration and emigration country would accelerate economic and job growth between the two (with trading goods being a substitute for migration motivated economically); and that “[a]id, intervention, and remittances can help reduce unwanted migration”, but may not lead to migrants staying in their country of origin. They also stated that there was a difference between managing migration from a country with free trade versus a country without free trade, posing that in a closed economy, “economic differences can narrow as wages fall in the immigration country”, which they said was a recipe for “anti-immigrant backlash”, and in an open economy, “economic differences can narrow” as wages increase at a faster rate in the emigration country. They add to the common thinking in migration literature that there were ‘pushes’ and ‘pulls’ that motivated
One of the important economic impact is that remittances sent home by migrants. These remittances benefit the poor family whose income is not sufficient to meet day to day needs. By allowing workers to move to areas where they are more productive and valued, migration leads to a direct increase in the global output and income. International migration has the potential of facilitating the transfer of skills and contributing to cultural enrichment. It should be maintain that both the sending and receiving countries should have the positive impact.