Foreign Direct Investment

R 1993Governments can make policies on the location of multinational corporations (MNCs ) that are favorable and that would increase FDI S They can also campaign or put in place proper root word like better transportation systems , education and transparency wholly of which works to hike FDI . Peace and stability are genuinely important factors in influencing FDI . Government must therefore command that they maintain law , and political unrest deters FDI . Grants subsidies and tax concessions encourage inward FDIThere are sparing and political agreements that favor regional economic integration like EU , NAFTA and MERCOSUR all of which construct implications for businessEconomic integration between nations could be though preferential guile area (PTA ) where countries are offered tariff reduction and discrimination is reduced to member countries . Free trade area (FTA could also be offered where countries eliminate tariffs between themselves still maintain their own external tariff on imports . Custom unions eliminate tariffs between themselves but set a common external tariff for antecedent the EU . Countries could also adopt a common securities industry economic union or monetary union train (Kreinin M . and Plummer M , 2002Economic arguments for economic integration .

There is change magnitude trade as countries produce what they have comparative improvement in . Foreign supply is reduced and trade change is promoted leading to economic growth . Member countries enjoy the economies of scurf Political argument for economic integration is that it promotes peace and stability among member countriesArguments against economic integration . Dumping of products can occur due to the eradication of barriers . Some countries tend to benefit more than than others . Countries may feel as they are losing their sovereignty which is their grit of pride (Hoekman B . and Schiff M , 2002The European Union is an economic union where member countries permit free movement of good , services and people and it uses a...If you want to get a undecomposed essay, order it on our website: Orderessay

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