Question
In: Economics
Over the past 35 years, there has been a marked increase in both the flow and...
Over the past 35 years, there has been a marked increase in both the flow and stock of FDI in the world economy. Discuss why FDI has grown more rapidly than world trade and world output. Site examples when possible.
Solutions
Expert Solution
The foreign direct investment (FDI) means that the firms invest directly in new facilities to produce or market in a foreign country. FDI has developed more quickly than world trade and world output for a few reasons. Initially, in spite of the general decrease in trade hindrances in recent years, firms still dread protectionist pressures. Officials see FDI as a method for going around future trade boundaries. Second, a great part of the expansion in FDI has been driven by the political and economic changes that have been happening in a considerable lot of the world's developing countries. The general move toward majority rule political foundations and free-market economies has energized FDI. Crosswise over quite a bit of Asia, eastern Europe, and Latin America, economic growth, economic deregulation, privatization programs that are available to outside speculators, and expulsion of numerous limitations on FDI have made these nations increasingly alluring to remote multinationals.
Rahul Sunny answered 8 months agoRelated Solutions
There has been a great deal of discussion in the news over the past few years...
There has been a great deal of discussion in the news over the
past few years about raising the minimum wage. Some cities and
states have increased minimum wages in their locality above the
federal minimum wage, which has brought demands for the federal
minimum wage to be increased. Some argue that the federal minimum
wage should be increased to $10.10 while others argue for the $15
level. From a microeconomics perspective, who is hurt and who is
helped by...
Over the past few years there has been a lot of media coverage on the cost...
Over the past few years there has been a lot of media coverage
on the cost of EpiPens.
EpiPens, a form of epinephrine is a front line drug for the
treatment of anaphylaxis (Drugs, 2018).
The company that makes EpiPen, Mylan was the subject of much
controversy and media attention. There were lawsuits filed against
the company due to the high cost of EpiPens.
One brand name EpiPen that contains two auto-injectors cost an
estimated $650-700 if bought with cash....
HARLAND CORP has been in existence for 45 years. Over the past, 6 years the stock...
HARLAND CORP has been in existence for 45 years. Over the past,
6 years the stock price has stagnated and remained between $22.15
and $22.82. The CEO, who started the company, believes that the
stock price needs to be higher, and the best way to do that is to
pay a dividend to increase the demand for the stock. The company
has never paid a dividend in their history. The CEO needs to
determine what type of dividend policy to...
HARLAND CORP has been in existence for 45 years. Over the past, 6 years the stock...
HARLAND CORP has been in existence for 45 years. Over the past,
6 years the stock price has stagnated and remained between $22.15
and $22.82. The CEO, who started the company, believes that the
stock price needs to be higher, and the best way to do that is to
pay a dividend to increase the demand for the stock. The company
has never paid a dividend in their history. The CEO needs to
determine what type of dividend policy to...
HARLAND CORP has been in existence for 45 years. Over the past, 6 years the stock...
HARLAND CORP has been in existence for 45 years. Over the past,
6 years the stock price has stagnated and remained between $22.15
and $22.82. The CEO, who started the company, believes that the
stock price needs to be higher, and the best way to do that is to
pay a dividend to increase the demand for the stock. The company
has never paid a dividend in their history. The CEO needs to
determine what type of dividend policy to...
HARLAND CORP has been in existence for 45 years. Over the past, 6 years the stock...
HARLAND CORP has been in existence for 45 years. Over the past,
6 years the stock price has stagnated and remained between $22.15
and $22.82. The CEO, who started the company, believes that the
stock price needs to be higher, and the best way to do that is to
pay a dividend to increase the demand for the stock. The company
has never paid a dividend in their history. The CEO needs to
determine what type of dividend policy to...
There has been a substantial increase in recent years of the number of lawsuits over negligence....
There has been a substantial increase in recent years of the
number of lawsuits over negligence. Do you think many of these
truly pass the “Reasonable Person” doctrine or not? Is this a
positive direction for the Unites States to be heading? Please
provide examples from your own experience and/or current
events.
An investment in the “techstar” has been highly volatile over the past four years. An initial...
An investment in the “techstar” has been highly volatile over
the past four years. An initial investment of $10,000 increased to
$25,000 at the end of the 1styear, increased to $35,000
by the end of the 2nd year, fell to $5,000 at the end of the
3rdyear, and recovered to $10,000 by the end of the
4thyear.
Calculate the arithmetic and geometric returns over the last
four years.
Which measure of performance is more appropriate to use when
analyzing past...
Much has been made over the past few years of drops and rises in the price...
Much has been made over the past few years of drops and rises in
the price of oil, with drops and rises often blamed on OPEC (drops
because they are trying to drive out US frackers and rises because
they have succeeded in driving them out. Two questions:
1) How can OPEC manipulate the oil market?
2) If you are reducing price to wipe out your competitors, you
need a credible strategy to get the money back. Is OPEC able...
The company has been growing steadily over the past 5 years, and the financials and future...
The company has been growing steadily over the past 5 years, and
the financials and future prospects look good. Your CEO has asked
you to run the numbers. After doing some digging into the business,
you have gathered information on the following:
• The estimated purchase price for the equipment required to
move the operation in-house would be $750,000. Additional net
working capital to support production (in the form of cash used in
Inventory, AR net of AP) would be...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Due to a recession, expected inflation this year is only 4.75%. However, the inflation rate in...
- What are the benefits of doing a pilot program before a full scale rollout of a...
- It is a calm summer day in southeast Iowa at the Ottumwa air traffic control radar...
- 1. Write a detailed article on Evolution of attacks on the internet & web [your article...
- Analyze the role of the contingency plan coordinator (CPC) in the scope of preparing a BIA....
- Amazing Manufacturing, Inc., has been considering the purchase of a new manufacturing facility for $500,000. The...
- LANGUAGE: JAVA Create a New Project called YourLastNameDomainName. Write a DomainName class that encapsulates the concept...
ADVERTISEMENT