Fdi Growth

In: Business and Management

Submitted By raxtaipei2356
Words 333
Pages 2
Nowadays, is has become popular to discuss the globalization trends and impacts on the business environment. Indeed, there are different views about globalization but the main differences concepts are focused on a couple of issued: the force of globalization, the global economic and socio environments of consequences and the implement of the nation countries.

In the first place, the concept of global economy interaction is represents the totally new division in the world development. In truth, the increases in economic boundaries flows that have resulted in more open markets of economies and transnational corporations as a result, such as World Trade Organization, to deals with the global trade between nations. In other words, globalization is not a single phenomenon, but is a general and complex phenomenon(Economy and Business 2006).

The five of forces and drivers of globalization impact
Growth of Foreign Direct Investment (FDI)
The increasing of FDI can give rise the economy globalization. It is generally to shows that foreign direct investment (FDI) can have different economic effects on a host country’s development effort. The FDI resulted in the opening global markets. For example, the free trade policy may be increasingly emerges of goods, services, finance, people and ideas across international borders. Furthermore, Borensztein et al. (1998) suggest that FDI is an important key for the transfer of technology, and there with strong complementary effects between FDI and human capital on the growth rate of income. Through the global trading systems and communication networks have the capacity to rise up new innovation, and create more new jobs. For example, developing countries are expected to have a higher level of human resources in order to get more benefit from FDI. In other words, the FDI inflow into the services sector may have positive…...

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