Fdi Economic Analysis

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Compare the flows of FDI among emerging economies and identify the reasons for this. Introduction The international market is totally changed by considering the title FDI which means foreign Direct Investment. The international market has played important role to allow the emerging market by providing the platform to compete with other markets. The FDI (foreign direct investment) is changed with the years due to the emerging market multinational enterprises (MNEs). The FDI flows has been increased throughout the years. The rise over the past three decades of the outwards FDI has been outstanding. But then due to the downturn of the economic in 2008, the financial crisis which had hit the economies of the emerging market has reduced the FDI…show more content…
Regarding FDI, there comes an issue with the economy and it is that policies of India does not allow the overseas corporate bodies to invest in India. There is a limitation to some of the sectors like aviation and insurance up to 49%. According to UNCTAD survey, it has revealed that after china India will be the second FDI destination. Also in 2012 the main important sectors which has attracted FDI are services industry mainly, construction industry, and computer software & hardware. The main sources of FDI are more common US and UK along with the countries like Mauritius and Singapore. Recently it has attracted more FDI during the first half of the year. It has attracted $31billion as competed to $28 billion of china and $27 billion of US. This means that India FDI inward is increasing and the reason is more development in service sector and vast, diverse sectors attracting…show more content…
Also the Brazil economy provides a platform of employment to many people. There was boom of FDI in 1990s and this was due to privatization which has contributed for about 31% of FDI inflow for the Brazil economy. There was a boom in Brazilian economy but then it slowed down in 2011. In 2013, the FDI has reached $64 billion and recently it has declined for about $62 billion. Brazil is the 4rth biggest investor among the emerging economies. This is due to the fact that access to raw material is very easy, flourishing economy, and also large inhabitant.US is one of the main investor in the economy of Brazil followed by Spain & Belgium. Brazil has many attractive sectors like finance, oil & gas industry and Telecommunication. Russia & FDI There has been increase in FDI in 2013, showing up to an increase in 83% from the last year. This is due to the fact that British company has acquired more stake in Russian ROSNEFT. But in 2014 there was a fall in FDI of Russia but still the Russia economy has played an important role in attracting the investor from the china. The major problems are faced by the economy which are corruption & changes in rules and regulations. Russia provides qualified workforce and also the access to raw materials. Also Russia has signed many treaties with China and many other

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