Merits and demerits of foreign direct investment
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1 Increasing supply of foreign currency and channelise international sources of industrial funds;
2 increases employment opportunity and help to reduce unemployment rate;
3 increases skills of the host country’s labour and facilitate technology transfer;
4 increases managerial knowledge of the host country’s professionals;
5 foster economic growth, export earnings;
6 introduces products standardisation and international exposure of other products;
7 provides corporate tax to the government and contribute in revenue growth;
8 creates a competitive business environment and productivity improves with the competition;
9 develops international channel of distribution;
10 assists in adopting international standard policies and creates a global business regime;
11 contributes to development of backward and forward linkage local enterprises and
12 assists in improving living standard of the stakeholders through different social responsibility measures.
2 increases employment opportunity and help to reduce unemployment rate;
3 increases skills of the host country’s labour and facilitate technology transfer;
4 increases managerial knowledge of the host country’s professionals;
5 foster economic growth, export earnings;
6 introduces products standardisation and international exposure of other products;
7 provides corporate tax to the government and contribute in revenue growth;
8 creates a competitive business environment and productivity improves with the competition;
9 develops international channel of distribution;
10 assists in adopting international standard policies and creates a global business regime;
11 contributes to development of backward and forward linkage local enterprises and
12 assists in improving living standard of the stakeholders through different social responsibility measures.
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