Question

2)   What has happened to the size and destination for inward Foreign Direct Investment?

3) Compare and contrast vertically versus horizontally integrated MNCs.

(USA)

Answer 1

Size and determination for inward foreign direct investment

foreign direct investment has great impact on growth by raising total factor productivity and more generally the efficiency of resource use in the beneficiary economy.foreign direct investment contribute in the process of globalisation during the past two decades. Foreign direct investment are FDI is a form of investment that involved in inoculation of of foreign funds into an enterprise that operates in a different country of origin from the financer.

Developing countries need to have reach a certain level of development in education technology infrastructure and health before being able to benefit from a foreign presence in their markets. FDI for developing country economy is well recognised. It given the appropriate host country policies and a basic level of development a majority of studies demonstrations that FDI generate technology spill over, help human capital formation, contribute tu two international trade integration, help create a a more competitive business environment and enhance enterprises development. I am because of this contribute to economic growth which the strongest tool to to elevate poverty in developing countries.foreign direct investment may help improve environmental and social conditions in the host country. FDI has other advantages such as for an expertise can be e an important factor in in improving the existing technical process in the country, advances in technology and process it improves the competitiveness of countries in the domestic economy, it also can improve the quality of products and process in particular sector, increased attempt to better human resources.