Advantages Of Foreign Direct Investment

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As a matter of fact, developing countries are attracting a momentous portion of global Foreign Direct Investments. The governments of these countries often compete ferociously for attracting multinational corporations in the expectation of the advantages and benefits they will bring to theses economies. Till, 1970s many governments were skeptical about the positive role of Foreign Direct Investment (FDI) for their economies, and regulation on such investment were common. Since the 1980s, FDI has increased rapidly as a outcome of market liberalization policies and regulations, and developing countries have experienced unprecedented levels of inward FDI reflected in the ratio of FDI stock to GDP, which almost triple between 1990 and 2005, …show more content…
MNC branches provide a way through which local firms can maximize their productivity and export potential, means to raising the level of economic development in these country. Yet, governments often expect positive outcome on society due to the economic development ; therefore, they not only sacrifice the human rights over economic goals , even worse some governments in developing countries overlook human rights abuses commit by foreign investors, to satisfying certain economic objectives. For instance, the case of oil companies in Nigeria is an excellent example, where the high revenues fall to local government and upper class that are associated with political and economic marginalization of local inhabitants, people who have been negatively affected by environmental degradation and military occupation of their lands and …show more content…
By take in account the number of arguments presented in this essay, it concludes, MNCs in developing countries to the certain extent, are able to create improvement and it is unfair to limit this point to MNCs. frequently, MNCs performance in developing countries have received criticism and often views as an evil. Although, MNCs promotes means to reduce unemployment but only a few recipients are beneficial. Indeed, MNCs should change their strategy by focusing on the world’s poorest people, who are a huge market and constantly been neglected on the premise that the poor cannot afford to buy. In fact, serving the poor can be profitable for both parties, by providing lower price that can be affordable by poor people; companies can modify their living conditions, and through participation of the poorest in the production, they can create positive economic and human rights impacts in developing
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