Get your quality homework help now and stand out.Our professional writers are committed to excellence. We have trained the best scholars in different fields of study.Contact us now at http://www.premiumessays.net/ and place your order at affordable price done within set deadlines.We always have someone online ready to answer all your queries and take your requests.

1. Impact of Foreign Direct Investment on Economic
Growth Sample Essay
Generally, most people are always of the view that foreign direct
investment has a positive impact on economic growth. However, it
should be noted that when taking an account for the various average
growth performance across sectors, the positive impact of foreign
direct investment may not be apparent. This should not be used to
wipe out the several benefits that foreign direct investment has on
enhancing the economies of various nations. It should be noted that
the major economic growth that is brought about by foreign direct
investments is often experienced in developing countries.
There are various ways through which foreign direct investment
impacts economic growth. It is an effective channel through which
technology is transferred from financially stable economies to
developing nations. This is because; foreign firms that are looking
towards establishing their presence in other countries have to factor in
the ideal technological framework that can support their operations.
The technological advancements are not only initiated for the benefits
of the firms and the sectors that they fall into but generally, the host
countries. As a result of this, the host countries also get to use the
technology, thus, great benefits that boil down to economic growth.
Through foreign direct investments, multinational companies form
partnerships with domestic firms or even stamp their presence in the
host countries by starting their branches therein. The investments can
be made on various sectors depending on the prospects that look
appealing to the investors. When this happens, there is going to be
significant increase in production levels in the respective industries.
This will further lead to an increase in imports and exports, thereby
earning better revenues. These revenues will not only benefit the host
country but also the investors since they are also in business.

2. Another impact of foreign direct investment is that it adds value to
human capital. Whenever multinationals are eyeing a particular country
for investments, they are always very keen on the workforce. For their
operations to move well as required, they need a skilled workforce.
However, it is not always easy to find enough skilled human capital in
the host country. Thus, they have to go an extra mile to offer on-job
training in order to acquire a skilled workforce. In this way, it is in order
to say that foreign direct investment creates human capital. The skilled
workforce that is crated is both beneficial to the investor and the host
country since if later on the firm or multinational decides to switch its
operations or cut foreign direct investment, the human capital will
remain with the host country. With a skilled workforce, there is always
easier and faster to accelerate economic growth.
The impacts of foreign direct investment on economic growth is varied
and mainly depends on a number of factors like a country’s national
income, human capital, domestic financial development, openness to
international trade among others. However, the general impact is
often a positive one.
Instead of struggling to craft top notch academic papers like the
sample above on your own, simply place an order with us Premium
Essays. We always guarantee standard academic papers for all
disciplines and deliver at your own convenience. Try us today for the
best academic results.