Merits and Demerits of FDI
MERITS AND DEMERITS OF FDI --Rosesforme
METHODOLOGY: Qualitative and descriptive text. Also, the enumerated points for Merits and Demerits have been substantiated with relevant examples and/or data in the form of Case point.
OBJECTIVES: An attempt has been made to make this report country-specific; therefore, the merits and demerits; the advantages and disadvantages, as would be almost similar with all developing countries, have been co-related with India’s dynamics and some data has also been presented therein.
Mankiw (2004) stresses that international trade affects economic growth and can indeed to be regarded as a type of technology in that it converts non-specialized production into specialized production.
Ogutucu (2002) argues that the Foreign Direct Investment (FDI) is a major catalyst for the development and the integration of developing countries in the global economy.
ABSTRACT: Globalisation is leading to greater convergence between economies.
The academics today are intrigued by questions such as whether the policies to promote Foreign Direct Investment (FDI) make economic sense and whether the benefits of FDI are sufficient to justify the kind of policy interventions seen in practice. Foreign Direct Investment has played an important role in the process of globalization during the past two decades. It has shrunk the markets and accelerated trade.
Another debating point has been the case of FDI versus export promotion for sustainable growth of a country’s economy.
While domestic investments add to the capital stock in an economy, FDI plays a complementary role in overall capital formation and in filling the gap between domestic savings and investment.
At the macro-level, FDI is a non-debt-creating source of additional external finances. At the micro-level, FDI is expected to boost output, technology, skill levels, employment and linkages with other sectors and regions of the host
METHODOLOGY: Qualitative and descriptive text. Also, the enumerated points for Merits and Demerits have been substantiated with relevant examples and/or data in the form of Case point.
OBJECTIVES: An attempt has been made to make this report country-specific; therefore, the merits and demerits; the advantages and disadvantages, as would be almost similar with all developing countries, have been co-related with India’s dynamics and some data has also been presented therein.
Mankiw (2004) stresses that international trade affects economic growth and can indeed to be regarded as a type of technology in that it converts non-specialized production into specialized production.
Ogutucu (2002) argues that the Foreign Direct Investment (FDI) is a major catalyst for the development and the integration of developing countries in the global economy.
ABSTRACT: Globalisation is leading to greater convergence between economies.
The academics today are intrigued by questions such as whether the policies to promote Foreign Direct Investment (FDI) make economic sense and whether the benefits of FDI are sufficient to justify the kind of policy interventions seen in practice. Foreign Direct Investment has played an important role in the process of globalization during the past two decades. It has shrunk the markets and accelerated trade.
Another debating point has been the case of FDI versus export promotion for sustainable growth of a country’s economy.
While domestic investments add to the capital stock in an economy, FDI plays a complementary role in overall capital formation and in filling the gap between domestic savings and investment.
At the macro-level, FDI is a non-debt-creating source of additional external finances. At the micro-level, FDI is expected to boost output, technology, skill levels, employment and linkages with other sectors and regions of the host