This paper examines the economic performance of the Asia-Pacific region and its relationship to foreign direct investment (FDI).
Written in 2007; 2,177 words; 12 sources; MLA; $ 67.95
Paper Summary:
The paper discusses how growth in the Asia-Pacific region has been explosive, largely due to the amount of foreign direct investment (FDI). The paper looks at theories of the positive and negative consequences of FDI in the growth and economic development of developing countries. The paper explains that the Gross Domestic Product (GDP) of a country, especially one that is developing, is important; it helps them to receive more credit, allows them to do more with the capital that they have and ensures that their currency is more valuable. The paper points out that there should be a higher FDI in many of the developing countries and notes that China is receiving much more FDI than the other developing countries.
"The productivity that is seen in these developing economies is highly important. Productivity is raised when FDI is involved, largely due to the fact that more people in the host country are able to get jobs. Many of these developing countries are not able to support themselves very well, and many of their people are very poor (Wakeman, 1984). When foreign investors become more involved in a country, they bring jobs, and they bring wages that are usually quite respectable for that particular country. This is a strong incentive for individuals in that country to seek employment at the new business, and therefore the people that do receive employment there will want to work very hard to ensure the safety of their jobs and to attempt to get raises and promotions (Wakeman, 1984)."
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