KOF Index
FDI: is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country.
Horizontal FDI: Processes conducted at home country are replicated directly in the host country.
Vertical FDI: performs value-adding activities either upstream or downstream on the processes in host country.
MNE: A company with operations in multiple locations across borders.
Economic System: system of production, distribution and consumption of goods and services.
Mixed Economy : Economy controlled and directed by both the Private Sector and the Government/State.
Capitalist Economy: A system controlled by Private firms. The investment, ownership, production, distribution and exchange of wealth is made by Private firms only. Operate mainly for Profit.
Benefits of Capitalism : High growth rate of economy, provides choice to consumers, provides valuable goods and services, punishes negative traits and rewards hard work, built on democracy and does good for society
Downfall of capitalism: Self interest, encourages inequality in society, monopolistic tendency, human resource exploitation, lobbying with the government to get unfair advantage.
Socialism: Property or business is held in common with the private body and the government but decisions are made by the Private body itself in the name of government body.
Features of Socialism: social ownership of means of production, existence of public sector, production is guided by social benefits, abolition of exploitation of workers.
Benefits of socialism: better salaries, stable environment, eliminates poverty, better products, fulfills survival needs
Criticism of socialism: suppression of economic democracy (people cant choose the price), slow technological advancement (owners resistive to change), minimize self management (as decisions have to be taken in consultation with
Horizontal FDI: Processes conducted at home country are replicated directly in the host country.
Vertical FDI: performs value-adding activities either upstream or downstream on the processes in host country.
MNE: A company with operations in multiple locations across borders.
Economic System: system of production, distribution and consumption of goods and services.
Mixed Economy : Economy controlled and directed by both the Private Sector and the Government/State.
Capitalist Economy: A system controlled by Private firms. The investment, ownership, production, distribution and exchange of wealth is made by Private firms only. Operate mainly for Profit.
Benefits of Capitalism : High growth rate of economy, provides choice to consumers, provides valuable goods and services, punishes negative traits and rewards hard work, built on democracy and does good for society
Downfall of capitalism: Self interest, encourages inequality in society, monopolistic tendency, human resource exploitation, lobbying with the government to get unfair advantage.
Socialism: Property or business is held in common with the private body and the government but decisions are made by the Private body itself in the name of government body.
Features of Socialism: social ownership of means of production, existence of public sector, production is guided by social benefits, abolition of exploitation of workers.
Benefits of socialism: better salaries, stable environment, eliminates poverty, better products, fulfills survival needs
Criticism of socialism: suppression of economic democracy (people cant choose the price), slow technological advancement (owners resistive to change), minimize self management (as decisions have to be taken in consultation with