• Definition of Foreign Direct Investment(FDI)………………... (2)
• Detailed Meaning of FDI… ... (3-4)
• Motives……………… ……….. (4)
• Types of FDI……………………...(5)
• Merits of FDI…………………..(6-8)
• Economic Development ……(8-10)
• Demerits of FDI…….………..(11-13)
• Conclusion…..…………………..(13)
• References… ………………..(14-15)
(ii)
Introduction
Knowledge has many branches and economic is an important and useful branch of knowledge. In recent years, the science of economics has assumed greater significance in view of the fact that knowledge of economics is being used for initiating and accelerating growth in the economies of the world .
Foreign direct investment (FDI) is an integral part of an open and effective international economic system and a major catalyst to development. Yet, the benefits of FDI do not accrue automatically and evenly across countries, sectors and local communities. National policies and the international investment architecture matter for attracting FDI to a larger number of developing countries and for reaping the full benefits of FDI for development. The challenges primarily address host countries, which need to establish a transparent, broad and effective enabling policy environment for investment and to build the human and institutional capacities to implement them.
In this report I shall explain the definition and different motives of foreign direct investment (FDI) .
I shall explain advantages & disadvantages of FDI and how FDI is necessary for a country for its economic development.
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