foreign direct investment

Question 1

foreign direct investment and why firms implement FD( (their benefits)

Answer 1

-main headquarters one place, branch in another
–abundance natural resources, emerging markets, low cost of labour, regulations and standards low

Question 2

effect FDI and cons

Answer 2

-injection into circular flow
-positive BOP effects
-MNCs and infrastructure developments
-tech transfer, tax rev
-employment short term, MNCs too much power, strip resources, invest in labour saving tech, env cost