Question

In: Economics

Explore and select one country with a developing economy. Research and discuss factors that this country...

Explore and select one country with a developing economy. Research and discuss factors that this country must consider on increase Foreign Domestic Investments

Solutions

Expert Solution

One country with developing economy is India.India has been witnessing a dynamic economy (rise and fall) after the Liberalization,Privatization and Globalization in 1991.Considering the current scenarios the country has been growing economy with great prospects.

Foreign Direct Investment is a form of controlling ownership in one country from a company with its origin in another country.These investments helps the bilateral trades between countries and also improve the economic conditions of the countries.The factors that India must consider on increased FDI includes the increase in the ratio of FDI/Development,as this could bring new technologies and processes in the country. Also,a country with as diverse and dynamic economics the FDI in different sectors like defense can also be welcomed.The initiatives such as made in India by the current government can also consist of collaboration for the better outputs.Alongside,there should be a par value for the amount of investments by foreign units,so that there is not full dependency of the country on external factors.


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