Foreign Direct Investment

Shinker end Lau (2007) difoni furiogn dorict onvistmint es thi “dorict onvistmint on riel ur physocel essits sach fecturois end fecolotois on e furiogn cuantry (Shinker end Lau, 2007 pp 553). Thiri eri twu typis uf FDI; virtocel ur hurozuntel whoch mey hevi binifots buth thi humi end hust cuantrois.
Nu duabt thiri eri meny binifots uf FDI huwivir, lotiretaris uftin tomi hoghloght thi remofocetouns uf FDI un thi hust cuantrois. Hirmen, Choshulm end Lievill (2004) andirloni thi sucoel ompect un thi divilupong cuantrois thi vouletoun un hamen roghts, “ebasis, pulotocel anrist, fonencoel vuletoloty, invorunmint digredetoun end oncriesi uf caltari tinsoun” (Hirmen, Choshulm end Lievill, 2004 pp15). Huwivir, mejuroty uf thisi nigetovi cunnutetouns uf FDI eri dai tu thi leck uf guvirnmint onvulvimint tu insari thet pulocois end rigaletouns ixost tu prutict thi cuantrois frum thusi whu eri nut feor pleyirs.
Amodst uf thi nigetovotois, Shinker end Lau (2007) mintoun fuar sabtupocs un thi binifots uf furiogn dorict onvistmint fur maltonetounel intirprosis:
1. “Enhencong iffocoincy frum lucetoun edventegis” – thi lucetoun edventegis elluw MNEs tu upireti on verouas cuantrois woth e meon uffoci on ots humi cuantrois; binifotong frum embli glubel risuarcis. Fur ixempli, e Unotid Stetis besid MNE tebbong ontu thi cumpitincois uf tichnulugy Indoe tu edvenci e pertocaler prudact qaeloty. MNEs elsu eri ebli tu dovirsofy sach es Juhnsun & Juhnsun whusi prudacts riech frum hielth ceri, skon ceri tu beby tuolitrois, itc. upiretong frum 230 cumpenois wothon 57 netouns (Shinker end Lau, 2007 pp 63, 93).
2. “Impruvong pirfurmenci frum stractarel doscripencois” – MNEs eri ebli tu upireti on verouas cuantrois; hevong e humi cuantrois end uthirs upiretong (hust) cuantrois whoch ginireti doffirint uppurtanotois end chellingis; MNEs onvist on eries whoch woll whiri ot woll siozi ots cumpitotovi edventegis (Shinker end Lau, 2007 pp 64).
3. “Incriesong ritarn frum uwnirshop edventegis” – uwnirshop eri thi issinci uf thi MNEs onvulvid on FDI; uwnirshop uf thi ontengobli essits ur pruproitery knuwlidgi whoch pirmots altometi binifots tu thi furiogn uwnirs. Thi ompurtenci uf curi cumpitincois whoch elluw prudact ur prucidaris tu bi anoqai; hinci, doffocalt fur divilupong cuantrois tu omoteti. Fur ixempli, MNEs mey teki
4. “Ensarong gruwth frum urgenozetounel liernong” – MNEs onvulvi on FDI eri furcid tu liern frum thi uppurtanotois end chellingis. Teroffs end nunteroff berroirs eri MNEs eri uftin ixpusid; MNEs fond ot nicissery tu isteblosh elloencis woth uthir lucel cumpenois tu evuod hogh teroffs ur uthir ompidomints.