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Attracting Foreign Investment in Developing Countries

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Added on  2019-12-03

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GLOBAL BUSINESS TABLE OF CONTENTS REFERENCES 5 In this world, each and every nation makes an attempt to attract foreign investment on its own land. Economic growth rate- Foreign investors before making any investment in nation look at its growth rate. This happens because governmentofthat respective nation is giving full support to corporate sector which are operating in the relevant nation (Porter, 2008). This means that if any foreign investor opens his business in that foreign nation then he will get full support from the government

Attracting Foreign Investment in Developing Countries

   Added on 2019-12-03

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GLOBAL BUSINESS
Attracting Foreign Investment in Developing Countries_1
TABLE OF CONTENTSREFERENCES................................................................................................................................5
Attracting Foreign Investment in Developing Countries_2
In this world, each and every nation makes an attempt to attract foreign investment onits own land. But some of these nations get success in bringing huge foreign investment in thenation. There are some of factors due to which few nations successfully attract attention ofinvestors for bringing FDI in their nation. Some of factors that play a key role in attractingforeign investment in these nations are a follows.1.Economic growth rate- Foreign investors before making any investment in nation look atits growth rate. Growth rate as a figure indicate lots of things. If in any economy growthrate is increasing consistently then it reflects that business operating in that economy isgrowing steadily. This happens because government of that respective nation is givingfull support to corporate sector which are operating in the relevant nation (Porter, 2008).This means that if any foreign investor opens his business in that foreign nation then hewill get full support from the government and will be able to tap abundant demand that isavailable in the foreign market. High growth rate also indicate that there is good demandfor products in the respective nation. Hence, economic growth is a factor which most ofthe foreign investor look before making investment in any foreign land.2.Positive image- Positive image of a nation also plays significant role in attracting foreigninvestment in the nation. When any investor makes any sort of investment in any nationhe on the basis of many factors evaluates the image of that nation (Johnson, Scholes andWhittington, 2008). On the basis of evaluation he decides whether to invest in the countryor not. Countries like India and China build their strong image among the foreigninvestors and due to this reason many MNC are operating in these nations and creatingample job opportunities in the mentioned countries. Hence, positive image of nation playsa great role in attracting foreign investment in the nation.3.Ample opportunities- Foreign investors before making investment in any nation look atopportunities that are available to them in the specific nation. Countries like India areattracting those companies that require high level of intellectual people for their business(Grant, 2010). Whereas, China is attracting numerous companies on its land due tobusiness friendly policy and low labor cost. So organization on the basis of demand, costand availability of resources identify opportunities in other nation. Due to this reason,Asian nations are successfully attracting investment from numerous firms on their land.1
Attracting Foreign Investment in Developing Countries_3

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