analyse the contribution of foreign investment in globalisation
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Globalization is a direct phenomenon, with significant effects on all factors of human activity which consists of economic , political , social , technological and environmental diversions . Efficiency of FDI is analysed above the domestic investment . FDI promotes exports of host developing countries .
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The contribution of foreign investment in globalisation involves fast transport of goods and services facilities in different places. They help in driving foreign direct investments. It acts as a provision of global markets to the countries and in other ways.
Explanation:
- Globalization is a direct phenomenon, with creates a powerful impact on all factors of human activities which consists of economic , political , social , technological and environmental diversions.
- The FDI is beneficial when analysed above the domestic investment. It acts as a promoter to the exports of host developing countries.
- An increment in the ratio of FDI and GDP increases the greater share of FDI and as a result increases the globalization level. FDI flows both inward and outward way and is about the percentage of GDP that indicates the degree of global investment activities of the economy for a specified time being reflects the changes between two periods.
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