Foreign Direct Investment in BRICs Term Paper by Nicky

A look at foreign investment in Brazil, Russia, India and China.
# 150313 | 4,965 words | 5 sources | MLA | 2012 | US
Published on Jan 30, 2012 in Business (International) , Economics (International)


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Description:

This paper examines in-depth the ongoing direct foreign investment in growing economies of BRICs, better known as Brazil, Russia, India and China. First, the paper clarifies the difference between foreign direct investment and indirect investment. Then, it describes foreign direct investment in each of the specific nations, highlighting salient examples with charts and graphs. Next, the paper explores how the opening of boundaries, the circulation of merchandise, people and capitals has significantly increased, and its impact on global trade. The paper concludes by stating that foreign direct investment is based on several forces within the destination countries, such as political stability, quality of governance or imports and exports. The final decision of investing or not within a country is given by a thorough analysis of these indexes in light of the goals and resources characteristic to a respective investor.

Outline:

1. Introduction to Foreign Direct Investments
2. Foreign Direct Investments in Brazil
3. Foreign Direct Investments in Russia
4. Foreign Direct Investments in India
5. Foreign Direct Investments in China
6. Conclusions

From the Paper:

"A simple look at the chart shows that the FDIs in Brazil have followed anything but a stable trend. The evolution can be divided into four distinct time zones: 1996-1999, 1999-2000, 2000-2003 and 2003-2006. Throughout the first time period, foreign direct investments in the South African country increased from 1 percent to nearly 5 percent - the largest growth in the studied period. Throughout the second period, FDIs would peak, coming to total up more than 5 percent in the country's gross domestic product. The following period was market by a dramatic decrease and the FDIs summed up less than 2 percent in the country's GDP. Finally, starting with 2003, an increase was again obvious and the investments came to be worth slightly less than 3 percent of the GDP, but were then again met with downfalls. A fifth and final period could be considered the one starting from 2005, when a stagnation in foreign direct investments in Brazil is noticeable."

Sample of Sources Used:

  • Alfaro, L., Chanda, A., Kalemli-Ozcan, S., Sayek, S., FDI and Economic Growth: The Role of Local Financial Markets, The University of North Carolina and Chapel Hill, 2001, http://www.unc.edu/depts/econ/seminars/chanda.pdf last accessed on August 12, 2009
  • Choi, C., Does the Internet Stimulate Inward Foreign Direct Investment? Journal of Policy Modeling, Vol. 25, Issue 4, June 2003, pp. 319-326
  • Graham, J.P., Spaulding, R.B., Understanding Foreign Direct Investments (FDI), Going Global, 2005, http://www.going-global.com/articles/understanding_foreign_direct_investment.htm last accessed on August 12, 2009
  • Guidelines for FDI, Ministry of Mines, Government of India, http://mines.nic.in/comp3annex.html last accessed on August 13, 2009
  • Investopedia, 2009, http://www.investopedia.com last accessed on August 12, 2009

Cite this Term Paper:

APA Format

Foreign Direct Investment in BRICs (2012, January 30) Retrieved May 10, 2021, from https://www.academon.com/term-paper/foreign-direct-investment-in-brics-150313/

MLA Format

"Foreign Direct Investment in BRICs" 30 January 2012. Web. 10 May. 2021. <https://www.academon.com/term-paper/foreign-direct-investment-in-brics-150313/>

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