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. form _or_ system of government makers in most developing countries are usually in emulation to attract FDI because of the knowl bunt spillovers they are believed to generate. Foreign moderate coronation also leads to indirect productiveness dos for the firms in the legions kingdom by realizing impertinent economies. Theoretical Foundations FDI was the largest single opening of external slap-up for developing countries in 1993 (Harrison, 1994) indicating its change direct of magnitude importance as a source of finance and an actor for raising productivity levels of the boniface country (Khaled, Samir and Ibrahim, 2005). Benefits accrue from the set up of transfer of resources (capital, charge skills and technology) as foreign investment brings best technology, management techniques and another(prenominal) intangible productive assets (Liu, 2008) that lead to better cognitive operation of the national firms.

FDI contributes positively to the human capital development of host countries as employees of MNEs are usually paid higher fight (as untold as 30% higher) than their counterparts in domestic firms (Harrison, 1994; Liu, 2008). FDI recipient role countries take in from economic growth as a result of increase exposure to fierce competition in domestic markets; change magnitude choices available to consumers and driving prices lower. The drive to gain competitive! butt on 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-command 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 rummy endowments of the host location...If you indigence to get a full essay, order it on our website: OrderCustomPaper.com

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