Analysis the contribution of foreign investment in globalisation
Answers
transfer of technology, contributing to growth in larger measure than domestic investment. produces externalities in the form of technology transfers and spillovers. global markets. In fact, he found that FDI is three times more efficient than domestic investment.
Answer:
Since the 1970s, foreign direct investment (FDI) has risen significantly in the global economy. Occasionally, however, the fundamental development was punctuated by comparatively short-lived FDI decreases, giving rise to the wave-like pattern.
In describing the motives behind FDI, economists typically distinguish between horizontal and vertical approaches, those driven by market-seeking factors, and those motivated by a willingness to access inputs such as inexpensive labor.
Understanding FDI's distinct motives is essential for discussing policy issues, identifying potential linkages between FDI and international trade, and evaluating spillovers that could be connected with FDI.