The purpose of this paper is to glimpse into the effect Foreign Direct Investment (FDI) on the Host economy. The effect FDI has on the host economy has ranged from technology transfer and know-how, integration in global market formation of human resources, increase in competition between firms and firm’s development and reorganization to meet current market trend. There has also been some adverse effect brought about by Foreign Direct Investment. This paper tends to take a look at both the positive and negative impact of FDI on host economy development.
Table of contents:
Abstract
Introduction
FDI impact on economic growth
FDI and Technological Transfer
Employment and Foreign Direct Investment
FDI contribution to capital inflow of private capital
Adverse effects of FDI on the local Environment
FDI Influence on Exchange Rates
FDI and Unemployment
FDI and Modern-Day Economic Colonialism
Summary
References
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