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The effects of Foriegn Direct Investment ( FDI).

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Foreign direct investment (FDI) plays a tremendous role on the global business landscape. Multinational organizations use data and tracking tools to constantly monitor which new markets or marketing channels could potentially provide them cheaper production facilities, give them greater access to new technologies and products. It can also provide technical skills and great financing in many cases. It also greatly benefits the host country.

This research goes into detail on how FDI works in a global economy with examples.

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Foreign direct investment (FDI) plays a tremendous role on the global business landscape. Multinational organizations use data and tracking tools to constantly monitor which new markets or marketing channels could potentially provide them cheaper production facilities, give them greater access to new technologies and products. It can also provide technical skills and great financing in many cases. It also greatly benefits the host country.

Upon receiving the investment, the country and area specified will begin to receive a source of new technologies, processes, capital investments, new advancing products, smarter organizational technologies and investments in training and qualifying new management skills. All these investments can provide a strong groundwork for economic development. In its traditional definition, Foreign ...

Solution Summary

Foreign direct investment (FDI) plays a tremendous role on the global business landscape. Multinational organizations use data and tracking tools to constantly monitor which new markets or marketing channels could potentially provide them cheaper production facilities, give them greater access to new technologies and products. It can also provide technical skills and great financing in many cases. It also greatly benefits the host country.

This research goes into detail on how FDI works in a global economy with examples.

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Foreign Direct investment (FDI) and its effects on the host and home countries

Resource-transfer effects, employment effects, balance-of-payment effects, and effects on competition and economic growth are the major benefits a country receives from inward FDI. Three costs of FDI concern host countries, namely: 1) they arise from possible adverse effects on competition within the host nation, 2) adverse effects on the balance of payments, and 3) the perceived loss of national sovereignty and autonomy.

Respond to the following:

Discuss the benefits and costs of FDI from the perspective of a host country and from the perspective of the home country.

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