This week we explored the various theories of FDI and discussed how political ideology has shaped...

This week we explored the various theories of FDI and discussed how political ideology has shaped these attitudes. With that said, please identify a cost and a benefit of FDI from the perspective of a home country. When answering this question, select any home country of your choice excluding the United States.

Solutions

Expert Solution

Foreign direct investment refers to investment where in a firm in one country directly controls or owns a subsidiary in another country. It can be said to be a direct Investment into a production/business in a nation made by individuals/organizations of another nation. It influences the investment pattern of the economy of a nation and targets to increase the overall efficiency. It is better than other mode because it is the easiest mode of entry and modifications can be made at any point of time.

The political risk refers to risk associated with a nation's politicians and at times can be beneficial for other nations on their decisions on investments. Corruption is considered to be a subject to social construction and reconstruction for an organisation. The less corrupted country is positively associated with foreign direct investment and GDP growth. The political environment of India make globalisation channelized as per political leaders. Thus when desperate politicians who does not support nationalizations it could be beneficial for global investors to invest in some strategic industries and creates an opportunity for them. However the complex tax systems and lack of financial resources are challenges that are usually negatively correlated with business activity. The Prevention of Corruption Act, 1988 is a Parliament of India's act that targets to combat corruption in government agencies as well as public sector businesses in the country. Effective management of political risk and awareness on laws of anti-corruption in India can help the organization to protect themselves against these risks.

Rahul Sunny answered 1 month ago

Next > < Previous

Related Solutions

As we explored this week, late adulthood is a dynamic, rich time of life with many...

As we explored this week, late adulthood is a dynamic, rich time of life with many transitions and times of both growth and loss. One of the most profound experiences in late adulthood is that of death and dying – both our own death and the loss of loved ones. In our readings this week, we learned about how important cultural contexts are in understanding the death and dying process. As current/future healthcare professionals, having an understanding of how others...

we have discussed various aspects of accounting and how it relates to the world around us....

we have discussed various aspects of accounting and how it relates to the world around us. Thinking about what you have learned from this course, how could this knowledge be used in your everyday life? Consider such factors as personal organizational skills, financial awareness, financial accountability, or professional career growth.

This week, we discussed the accounting for the investment of bonds in a subsidiary. Why are...

This week, we discussed the accounting for the investment of bonds in a subsidiary. Why are bonds treated as retired during the consolidation process? What theoretical justification is used to support this accounting treatment? Please justify your answer, from a practical and also theoretical standpoint.

Please show in EXCEL how to express with function formula. As we discussed during Week 3,...

Please show in EXCEL how to express with function formula. As we discussed during Week 3, researchers decide to ask 4 tie-purchasing customers whether they bought a bow tie or normal tie. According to national data, 3% of all ties purchased are bow ties. Not surprisingly, this problem can be easily framed as a Binomial Distribution problem, as it meets all of the conditions outlined in our Week 4 (Monday) class. Further, we can identify the purchase of a bow...

Over the past 10 weeks, we have discussed various aspects of accounting and how it relates...

Over the past 10 weeks, we have discussed various aspects of accounting and how it relates to the world around us. Thinking about what you have learned from this course, how could this knowledge be used in your everyday life? Consider such factors as personal organizational skills, financial awareness, financial accountability, or professional career growth.

This week we are looking at the ACA. There are many strong political views of this...

This week we are looking at the ACA. There are many strong political views of this legislation, but we need to look at what worked and what did not. Can the Law be amended to work better than its current form? Or does it need to be scrapped and completely re-written? Which option is more cost-effective? These are just a couple of the difficult questions. Analyze how cost-benefit analysis affects legislative efforts Analyze legislative intent of bills Identify proponents and...

Choose two nursing theories discussed this week in your readings. Compare both in terms of concepts,...

Choose two nursing theories discussed this week in your readings. Compare both in terms of concepts, assumptions, implications, and application.

From the 2016 General Social Survey, when we cross-classify political ideology (with 1 being most liberal...

From the 2016 General Social Survey, when we cross-classify political ideology (with 1 being most liberal and 7 being most conservative) by political party affiliation for subjects of ages 18–27, we get: ------------------------------------------------------------- 1 2 3 4 5 6 7 Democrat 5 18 19 25 7 7 2 Republican 1 3 1 11 10 11 1 ------------------------------------------------------------- When we use R to model the effect of political ideology on the probability of being a Democrat, we get the results: -------------------------------------------------------------...

This week we discussed and defined the types of business structures along with their advantages and...

This week we discussed and defined the types of business structures along with their advantages and disadvantages. On page 2 of the attached document, there is a Business Structure Chart where you will be filling in the definitions and advantages & disadvantages of each business structure. On the chart under the category of sole proprietary, a partial example has been started to show you how to fill in the chart. After you have completed the chart,you will need to answer...

1.This week, we discussed the accounting for the investment of bonds in a subsidiary. Why are...

1.This week, we discussed the accounting for the investment of bonds in a subsidiary. Why are bonds treated as retired during the consolidation process? What theoretical justification is used to support this accounting treatment? Please justify your answer, from a practical and also theoretical standpoint. 2.One of this week’s topics covered the accounting for leases on the consolidated financial statements. In 200 words or more, discuss the issues that relate to the accounting for operating and capital leases. In your...

Subjects