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Examine the positive and negative implications of Foreign Direct Investment (FDI) on the host countries as well as the investing companies.
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| Submitted: Tue May 02 2006
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This investigation will examine the positive and negative implications of Foreign Direct Investment (FDI) on the host countries as well as the investing companies. This study will also touch upon the differences FDI makes for developed countries as well as low economically developed countries (LEDC's). Introduction Foreign Direct Investment is defined as 'any equity holding across national boarders that provides the owner substantial control over the entity' (see Appendix A). This is generally defined as a 10% holding or greater. Most FDI ends up being 100% ownership by a Multi-National Corporation (MNC). FDI has increased dramatically in the past twenty years (see Appendix B need 2 find!), to become the most common type of capital flowing across borders in both developed and developing economies. For the most part politicians and economists welcome the increase of FDI to developing economies. It brings capital needed for economic development in the country in a way...
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