Fdi In The Host Country Case Study

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Findings: FDI plays vital role in achieving sustainable economic development in the host country. FDI has both positive as well as negative impact on economic growth of the host country. FDI benefits the host country in numerous ways. It has a huge positive impact on economic growth and development of host country in a sustainable manner. Some of the positive impacts of FDI on host country are discussed below: 1. Better financial opportunities: FDI makes a contribution to economic development by providing better opportunities for financial resources, upgrading production and trade capabilities and fostering economic modernization. 2. Encourage international trade: FDI encourages and improves international trade which provides better and easy access to international products. FDI makes international trade easy by providing better access to international products and by ensuring company meet their sales goals and objectives. 3.…show more content…
Better access to foreign financial constrains must be provided to parent country which will help firm in investing in potentially more efficient and environment friendly techniques. 4. To exploit the benefits of FDI, countries must improve their financial system and financial market regulations. 5. Infrastructure facility of the country must be improved with the view to encourage inflow of foreign investment. 6. Upgraded technologies and modern production methods must be used to attract more and more FDI inflows. 7. Better and cleaner technologies must be used to ensure steady increase in environment standards. 8. Human resource capital must be developed by increasing their competencies, skills and knowledge, with the help of better training opportunities. 9. Open market activities must be encouraged in order to ensure optimum utilization of resources, use of advance technology, integration of economy with world’s economy and increase sales potential. 10. Disparity among revenue and cost must be reduced by lowering cost of production.

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