Foreign Direct Investment

Foreign Direct Investment Introduction Developing countries and emerging economies have in the last few years increasingly come to see Foreign Direct Investment (FDI) as a source of economic development and modernisation, income growth and employment. ... The challenges are primarily directed toward host countries, which need to establish an environment for investment. ... What do we mean by Foreign Direct Investment? Foreign Direct Investment occurs when a company invest directly in facilities to produce and/or market a product in a foreign country (International business, page 2...

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• Grade Level: Undergraduate

If this inflation rate continues to rise, this may mean that the money supply is growing faster than the rate of the economy and could negatively affect our foreign direct investment. ... Conversely, in the energy industry this would be detrimental to our foreign direct investment because the energy industry relies heavily on growth. ... It is important to understand the cultures and traditions of the specific centers when determining which would be best for foreign direct investment (Lin and Stoianoff). ... In fact, the majority of the foreign direct investment ended up in manufacturing sec...

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The age breakdown looks something like this: 0-14 years: 15.4% 15-64 years: 67.6% 65 years and over: 17% With a 8.99/1000 birthrate and a 10.36/1000 deathrate (Cia.gov, 2002), only the small amount of foreign-born immigrants that come to Germany each year are keeping the population growth rate in the positive. ... With 91.5% of it's population being German, 2.4% being Turkish, and 6.1% being made up of "Other" groups such as: Serbo-Croatians, Italians, Russians, Greeks, Polish, and Spanish (yahoofacts, 2003) It's slight diversity in ethnic backgrounds is unified by it's la...

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• Grade Level: Undergraduate

The second key question that comes to mind is why does the U.S. seem so confident about receiving foreign investment business? ... The U.S. has a repetition for gaining the most wealth during foreign investment. ... The main point of view in this article is Foreign investment is still important to the U.S. economy. The United States is both the source and the recipient of more foreign direct investment than any other country in the world (Daga, 2013). Therefore, U.S. likes to invest in rich foreign countries typically to see the investment return into our economy. ...

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• Grade Level: High School

Djankov et al gives that "unconstrained foreign aid will likely increase public consumption rather than investment (Djankov, Montalvo & Reynal 2008, p. 16) and thus the lack of investment is unlikely to promote any economic growth. ... Dedu et al find that foreign aid targeted in the provision of public consumption and funding of infrastructure crowd out foreign investment (Dedu, Staicu & Nitescu 2011). ... Specifying the type of businesses, the location for investment and the kind of investment, they argue would lead to a pareto efficient outcome, currently not achieved by aid itself. Therefo...

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• Grade Level: Undergraduate

Our first objective with our foreign direct investment into this Canadian company is to get a good handle on our competitors and clearly establish what is different about our products compared to theirs. ... Mode of Entry The best mode of entry for our business would be a foreign direct investment. A foreign direct investment would require us to make a minimum of 10% investment into the business. ... By entering the market using a foreign direct investment, it will give us as investors a great deal of control. ... Foreign direct investment will help us maximize our sales potential as there is...

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Foreign debtin Australia Foreign Debt Foreign debt is a subset of the financial obligations that compromise a countries international investment position. It includes all the non-equity components of the net international investment positions, all recorded assets + liabilities other than equity securities + direct investment equity capital including reinvested earnings. ... The borrowed money can be used to start new enterprises or investment avenues that can generate further funds. ... Some solutions that can help the Australian Federal Government to reduce the debt is to increase the i...

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• Grade Level: Undergraduate

The different modes of entering foreign markets I will evaluate are; exporting, licensing, Foreign Direct Investment (FDI), franchising, strategic alliances, turnkey projects and countertrade. Exporting is the direct sale of domestically produced goods in another country. ... Small companies tend to license their assets in order to enter foreign markets as they are less risky compared to some large companies which decide to use foreign direct investment which requires massive amounts of investment and can hold very high risks. ... Licensing mainly holds advantages for small companies as it al...

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• Grade Level: Undergraduate

The most apparent way for the country to stimulate these types of changes in the economy lies within the realm of foreign direct investments. ... South Africa is truly in need of foreign direct investments for many reasons. ... South Africa may want to consider other methods of attracting entry to the company because it will allow easier transitions to foreign direct investments. ... South Africa's lack of technology, in some aspects, could be considered a major reason for investors steering clear of foreign direct investments. ... Also through this plan, South Africa would be able to...

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• Grade Level: Undergraduate