Fdi Is Essential for Economic Growth of Country

Foreign Direct Investment is

Essential for

Economic Growth

Of   a   Country.

Contents

    • Introduction…………………   …   (1)

    • 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.

                                                      (1)

Definition   of   Foreign   Direct     Investment (FDI).

    • Foreign direct...