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Connection Between FDI and Economic Growth: A Quick Analysis , May 2020

By : Julia Zoukhri Posted May 20, 2020 Reading Time: 2 minutes
No. of views: 20

One of the most controversial issues in international economics is the connection between FDI and Economic Growth. This is one of the toughest tasks for students to write about these kinds of controversial topics in assignments. That’s the major reason they are looking for the best writing support so that they complete the entire work as per instructions. Here we are working as a problem solver for them because we are introducing our brilliant writer’s team to write economics assignment help.

Role of FDI

Foreign Direct Investment is mainly done by an investor from another nation for which the foreign investor has regulated over the entire business purchase. In this way, we can simply get financial support from other country people. These types of businesses come in the category of Multinational Corporations.

Advantages of FDI

This entire process also helps to increase the financial growth of the nation as well. There are lots of benefits we can get from FDI like:

  • Directly Access to Market: FDI is one of the most effective methods that permit to direct deal with the foreign markets. You can also get the chance to interact with the foreign market by following the rules and guidelines of the nation.
  • Direct Access to Resources: The most powerful technique that helps to acquire vital natural resources. With the help of this, you can get the chance to deal with the metal market, fuel market as well as different oil companies.
  • Less Production Cost: If you get the chance to deal with the foreign market then you will easily get several options while purchasing the products.

Does FDI Help Developing Countries?

As per the results of several kinds of researches, we can say that FDI is good for the economic growth of a country. In simple words, FDI helps to increase the development growth of a host country. You can also say that this is a tremendous source of external capital for a developing nation, which can lead to economic growth as well. To write something about these topics students also need additional support and guidance and that’s why we are offering best and affordable assignment writing help to them.

How FDI and Economic Growth are Interconnected?

If a nation is not blessed with the factors of production that means they don’t have an advanced methods to create good products. To solve this problem they will take the benefits of FDI because it gives a chance to interact with the foreign markets and you will get the best products to fulfil the customers’ requirements as well as it also helps to increase the economic growth of the nation as well. This growth gives a chance to hire maximum people and they will also get the money to survive. If they get good salaries then they will pay the tax to the government. The development of the financial market of a nation also helps to increase the educational level as well.