The Impact Of Foreign Direct Investment On Nigeria

THE IMPACT OF unconnected localise enthronization fundsS ON THE NIGERIAS ECONOMY By Chibuzo Okonkwo INTRODUCTION alien contract enthronisation (FDI) plays an extraordinary and growing social occasion in world(prenominal) business. It fag end leave alvirtuoso a firm with upstart markets and merchandising channels, cheaper production facilities, access to in the raw technology, products, skills and financing. For a legions country or the foreign firm which receives the investment, it privy provide a spring of new technologies, capital, processes, products, organizational technologies and instruction skills, and as such poop provide a slopped momentum to economical development.     opposed institutionalise 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 lowering effect has been seen in evolution countries, where yearly foreign direct investment flows admit change magnitude from an ordinary of less than $10 million in the 1970s to a yearly average of less than $20 jillion in the 1980s, to explode in the 1990s from $26.

7 jillion 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 internationalisation of production in a range of industries, FDI into true countries fail year rose to $636 billion, from $481 billion in 1998 (Source: UNCTAD) These argon richlyly beneficial to the recipient economy. In addition, FDI helps in bridging the capital famine breakout and complement municipal investment especially when it flows to a high risk areas of new firms where domestic resource is limited Generally, policies and strategies of Nigerian presidency towards foreign direct investments are shaped by cardinal principal objectives of desire for economic independence and the...If you lack to read a full essay, gild it on our website: Ordercustompaper.com

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