foreign direct investment Flashcards

1
Q

foreign direct investment and why firms implement FD( (their benefits)

A

-main headquarters one place, branch in another
–abundance natural resources, emerging markets, low cost of labour, regulations and standards low

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

effect FDI and cons

A

-injection into circular flow
-positive BOP effects
-MNCs and infrastructure developments
-tech transfer, tax rev
-employment short term, MNCs too much power, strip resources, invest in labour saving tech, env cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly