Foreign Direct Investment Definition Essay

Exclusively available on IvyPanda Available only on IvyPanda

Developing countries can attract and support foreign direct investment (FDI) by creating open markets which are transparent and dependable. Reduced restrictions create conditions that allow FDI inflows by creating entry points on the market and producing flexible labor regulations or protections of intellectual property. A country can introduce investment promotion that would target foreign investors and connect them with domestic sectors and businesses which may benefit from multinational investors (Moran, Görg, Seric, & Krieger-Boden, 2017).

We will write a custom essay on your topic a custom Essay on Foreign Direct Investment Definition
808 writers online

Once the policy and regulatory framework are in place, the next aspect of attracting FDI for developing countries is economic determinants. Determinants can consist of location-bound resources, size of markets for trade, and production capabilities or cost-advantages. Quality and availability of infrastructure, market growth, technology, and human capital are also considerable factors (Sauvant, 2015). If these economic determinants are weak or non-existent, then any foreign investment will be ineffective and result in low net outflow values.

Finally, it is crucial to increase the contribution of FDI inflows that would create incentives for further investment. This ties in with investment promotion and helps to build a solid case for developing nations. The United Nations has recently emphasized the critical role of FDI in attaining sustainable development goals such as food security. A country can exploit its competitive advantage to grow its economy. It will help to regulate sustainability and improve risk management that provides better access to financial markets (Svensson, 2015).

References

Moran, T., Görg, H., Seric, A., & Krieger-Boden, C. (2017). Web.

Sauvant, K. P. (2015). Attracting foreign direct investment and benefiting from it: Challenges for the least developed countries. Transnational Corporations Review, 7(2), 125-127.

Svensson, T. (2015). Capital Finance International. Web.

Print
Need an custom research paper on Foreign Direct Investment Definition written from scratch by a professional specifically for you?
808 writers online
Cite This paper
Select a referencing style:

Reference

IvyPanda. (2021, June 19). Foreign Direct Investment Definition. https://ivypanda.com/essays/foreign-direct-investment-definition/

Work Cited

"Foreign Direct Investment Definition." IvyPanda, 19 June 2021, ivypanda.com/essays/foreign-direct-investment-definition/.

References

IvyPanda. (2021) 'Foreign Direct Investment Definition'. 19 June.

References

IvyPanda. 2021. "Foreign Direct Investment Definition." June 19, 2021. https://ivypanda.com/essays/foreign-direct-investment-definition/.

1. IvyPanda. "Foreign Direct Investment Definition." June 19, 2021. https://ivypanda.com/essays/foreign-direct-investment-definition/.


Bibliography


IvyPanda. "Foreign Direct Investment Definition." June 19, 2021. https://ivypanda.com/essays/foreign-direct-investment-definition/.

Powered by CiteTotal, easy essay referencing tool
If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Request the removal
More related papers
Cite
Print
1 / 1