Report On Foreign Direct Investment (FDI)

Added on - 23 Feb 2020

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Running head:INTERNATIONAL RELATIONInternational Relation and Global EconomyName of the Student:Name of the University:Author’s Note:
2INTERNATIONAL RELATIONTable of ContentsIntroduction......................................................................................................................................4Factors influencing foreign direct investment.................................................................................4Conclusion.......................................................................................................................................9References......................................................................................................................................10
3INTERNATIONAL RELATIONExecutive SummaryThis present report consists of an overview of the different factors that are associatedwith the foreign direct investment. Hence, it has been received that the foreign direct investmentin a particular country needs stable political environment and flexible trade policies. On the otherhand, it has been received that Singapore is the good country for the foreign investment as it hasa stable political environment, low taxation policy, and good economic growth. Therefore, lowwage and skilled labor are the prior areas of the foreign investment in a country as every foreigncompany wants to increase their productivity by reducing their operating cost. Therefore, it canbe said that return on investment is another factor of foreign direct investment.
4INTERNATIONAL RELATIONIntroductionForeign direct investment in a country is one of the most important approaches toincrease the economy of the country. However, to strengthen the economic condition of thecountry a struggle occurs between the countries as every country wants to attract the foreigninvestors. Foreign investors play a crucial role in developing the economy of a country. Since1914 the foreign investment process has been evolving rapidly. However, foreign investmentprovides the alternative products and also maximizes the supply of the essential products throughthe import mechanism (Sharma 2017). Often policies that are developed by the governmentaffects the foreign investment as these are favorable for the local investors than the foreigninvestors. On the other hand, double taxation influences the foreign investors negatively whileinvesting in a country. This study deals with the potential factors involved in influencing theforeign investment in the context of Singapore and other countries.Factors influencing foreign direct investmentVarious factors are involved in the foreign direct investment since 1914 that leave bothnegative and positive effect on the foreign direct investment in different countries.Government stabilityStable political environment and the government is necessary for the foreign investmentin a country. However, the foreign investors always look for the country that has a stablegovernment and trade policies that are favorable for them (Pathan 2017). Therefore, it isessential for the government to support the foreign investment thus the investors do not fear to
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