Foreign Direct Investment and Globalization Essay

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In the present-day world, more and more often national economies find themselves facing factors of globalization that change the landscape of business and employment. Despite its recognition as a phenomenon of growing importance, globalization remains debatable in terms of its impact on economies, societies, and politics. Employment is an area where determining the effects of globalization is particularly challenging. On the one hand, globalization negatively affects domestic employment markets as it undermines the competition by bringing in an external workforce. On the other hand, globalization positively affects the job market as it redistributes the offerings, thus providing more homogenization. Both of these opposite views can be supported by the phenomenon of foreign direct investment (FDI). As a feature of globalization, FDI is a controversial result of markets’ global integration. Researchers stress that the effects of FDI on employment require extensive study. A practical project involving local businesses is the best way to collect and analyze necessary data to address the issues of the effects of FDI.

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The audience for the proposal is a granting agency. The members of the committee need to be persuaded to fund the proposed project. For this purpose, the project’s relevance needs to be explained through describing the project’s goals and implementation and demonstrating who will benefit from this project. The granting agency representatives are likely to be interested in the project’s strong theoretical basis as well as evidence of practical application and justification of research methods. What should be emphasized before the committee is the project’s theoretical value (contribution to the understanding of the effects of FDI on employment in general) and practical significance expressed in the form of assistance to local businesses. Also, it should be stressed that the project will benefit the local community as it will improve the labor market and inspire businesses to contribute to the well-being of the community within which they operate.

The project strives to leverage the effects of FDI on unemployment by applying the trade model developed by Schmerer. There are three steps. First, the local economic environment will be examined for labor trends. In particular, local companies will be surveyed for their willingness to adopt the suggested model. Second, the data will be analyzed to identify the areas with the highest potential of increasing FDI favorability. Third, the developed model will be presented to local businesses for implementation. This approach will allow taking indirect control of the positive effects of FDI. What is especially valuable about the project is that the implementation will generate observable short-term results. If the results are positive effects, it will increase the interest in the suggested model and reinforce the motivation for its further implementation. However, the project is expected to have long-term results as well, as it will contribute to the development of the local market and the community. Implementation of the project, including conducting the study and developing an applicable model, will require funding and skills.

Implementation of the proposed project will benefit local businesses in addition to the community. The businesses will be able to observe the effects of FDI and modify their operation toward higher effectiveness. In addition, as mentioned above, the project is expected to bring positive change for the community in the long run as it is capable of launching a cycle of social improvements by boosting the labor market. For example, increased demand for a qualified workforce will ignite education initiatives to raise a new generation of people complying with the advanced requirements of the job market. The research will also provide valuable practical data on the effects of FDI on employment, which is still a debatable topic. It will enhance the theoretical understanding of the way globalization impacts domestic and local economies.

The proposed project has a significant advantage in comparison with similar studies: It explores the effects of FDI on unemployment in the context of globalization, which is a concept of growing importance. The project strives to find a balance between diversification and homogenization, both of which offer opportunities for economic improvement under proper conditions. One of the advantages of the project is that it ensures a necessary level of safety. Safety is provided by the project design, in that it employs methods of control and adaptation.

It is not suggested to impose certain models of operation or practices on local businesses, which would be risky. Instead, it is proposed to develop an adequate model based on the data collected from local markets and then to apply this model to these markets. Also, it should be stressed that the project is promising as it offers new solutions to the community and to local businesses that are experiencing observable dissatisfaction with the current situation. The community and local businesses, the two principal targets of the project, are likely to show willingness for project implementation and readiness for change due to this dissatisfaction. Overall, it can be said that the suggested project is promising and efficient in terms of safety, cost, and acceptance by the stakeholders.

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IvyPanda. (2020) 'Foreign Direct Investment and Globalization'. 14 October.

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IvyPanda. 2020. "Foreign Direct Investment and Globalization." October 14, 2020. https://ivypanda.com/essays/foreign-direct-investment-and-globalization/.

1. IvyPanda. "Foreign Direct Investment and Globalization." October 14, 2020. https://ivypanda.com/essays/foreign-direct-investment-and-globalization/.


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IvyPanda. "Foreign Direct Investment and Globalization." October 14, 2020. https://ivypanda.com/essays/foreign-direct-investment-and-globalization/.

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