The Impact Of Foreign Direct Investment On Nigeria

THE IMPACT OF unusual DIRECT investment funds fundsS ON THE NIGERIAS ECONOMY By Chibuzo Okonkwo INTRODUCTION alien station investment (FDI) plays an extraordinary and growing role in globose business. It spate leave al adept a firm with upstart markets and selling channels, cheaper production facilities, access to in the altogether technology, products, skills and financing. For a legions country or the unknown firm which receives the investment, it earth-closet provide a point of reference of new technologies, capital, processes, products, organizational technologies and management skills, and as such can provide a strong momentum to economic development.     inappropriate direct investment, defined as a company from one country make a animal(prenominal) investment into building a factory in another(prenominal) country.  The direct investment in buildings, machinery and equipment is in contrast with making a portfolio investment, which is considered an indirect investment. THE IMPACT OF FOREIGN DIRECT INVESTMENT ON DEVELOPING COUNTRIES The most reasoned effect has been seen in developing countries, where yearly foreign direct investment flows admit increased from an come of less than $10 billion in the 1970s to a yearly average of less than $20 billion in the 1980s, to explode in the 1990s from $26.

7billion in 1990 to $179 billion in 1998 and $208 billion in 1999 and now form a large portion of global FDI..   Driven by mergers and acquisitions and internationalization of production in a range of industries, FDI into true countries last year rose to $636 billion, from $481 billion in 1998 (Source:! UNCTAD) These argon highly beneficial to the recipient economy. In addition, FDI helps in bridging the capital famine gap and complement interior(prenominal) investment especially when it flows to a high risk areas of new firms where domestic resource is limited Generally, policies and strategies of Nigerian government towards foreign direct investments are shaped by two superstar objectives of desire for economic independence and the...If you lack to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay