Foreign Direct Investment Impact In Nigeria

Benefits of FDI to MNEs and Host Countries Introduction Globalization has brought with it declining trade barriers and a fast amplify in foreign direct investment as businesses look to bypass protectionist measures through more direct investments. indemnity makers in most developing countries are usually in emulation to attract FDI because of the knowl bunt spillovers they are believed to generate. Foreign check coronation also leads to indirect productiveness net profits for the firms in the emcee kingdom by realizing impertinent economies. Theoretical Foundations FDI was the largest single quotation of external slap-up for developing countries in 1993 (Harrison, 1994) indicating its change social club of magnitude importance as a source of finance and an federal agent for raising productivity levels of the array country (Khaled, Samir and Ibrahim, 2005). Benefits accrue from the effectuate of transfer of resources (capital, charge skills and technology) as foreign investment brings pucka technology, management techniques and another(prenominal) intangible productive assets (Liu, 2008) that lead to better executing of the national firms.

FDI contributes positively to the human capital development of host countries as employees of MNEs are usually paid higher salary (as untold as 30% higher) than their counterparts in domestic firms (Harrison, 1994; Liu, 2008). FDI pass receiver countries take in from economic growth as a result of increase exposure to fierce competition in domestic markets; increase choices available to consumers and driving prices lower. The d rive to gain competitive molding stimulates! capital investments in R&D, increasing productivity, human capital augmentation and increased exports (Akinlo, 2004). For the MNEs, FDI benefits are explained using Dunnings (1981) OLI framework. self-control advantages based on access to specific assets and processes give an edge over their counterparts in the same market (Jensen, 2003). Location advantages relating to the fishy endowments of the host location...If you indigence to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper