Costs and Benefits of Foreign Direct Investment for New Zealand

New Zealand ? Report 1.0Introduction Throughout the production of this report I volition aim to explain an analysis of the costs and benefits of foreign take in investment funds for New Zealand both in theoretical and experimental terms. When it comes to defining FDI different countries may define it differently and because of this it is arbitrary, only foreign at once investment kindle be set forth as: Foreign Direct Investment is the purchase by the investors or corporations of one country of non-financial assets in another country. This involves a light of capital from one country to another to bod a factory, purchase a business or bargain real estate. (http://www.afsc.org/trade-matters/learn-about/glossary.htm). In New Zealand foreign direct investment plays a pivotal part in the countrys scrimping growth, this is shown by the fact that over the past two decades the flow of F.D.I in New Zealand has increased substantially and that FDI stocks have locomote from around NZ$ 300 million in 1981 (pre-economic reforms) to NZ$49.3 billion for the course of study ending March 2001, this will be looked at in more detail in section 1.2.

Foreign direct investment (FDI) has the potential to generate employment, raise productivity, transfer skills and technology, elicit exports and contribute to the long-term economic development of the worlds growth countries. More than ever, countries at all levels of development seek to leverage FDI for development . 2.0 Multinational Enterprises A Multinational can be defined as the following: A firm, usually a corporation that operates in two or more countries. In practice the term is used interchangeably with Multinational tum. (http://www-personal.umich.edu/~alandear/glossary/m.html) The phenomenon of multinationals is not entirely recent as you can go back to before World War I and see that American firms had factories in foreign countries, but it became further more common after World War II and today it may be difficult to find a... If you insufficiency to get a full essay, order it on our website: Orderessay

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