Business Environment

Exploring the significance of international trade and European dimension for UK businesses

Describe and discuss the role of foreign direct investment (FDI ) in globalisation . What do you conclude

FDI has become more of a driving force for economic globalisation it has not only contributed significantly towards the even distribution of resources globally but catalyzed the industrial and climatic restructuring , sowing the seeds of competitiveness and efficiency . It also helped in promotion of advancement and innovation in economic systems and technology . As Globalisation is composed of four major trends , those making

up the first wave of globalisation ' with financial flows as the most important of them , Foreign Direct Investment makes up the most of this pillar . According to the article Transition Economies : An IMF Perspective on Progress and Prospects (2000 , FDI plays a significant role towards the development of economy , it shows different arrangement in regional patterns as compared to the international trade , on one hand there are countries like India who increased her share of global trade with little FDI while her immediate neighbour China rolled out on world stage with the momentum given by massive injection of Foreign Direct Investment . Of the inflows into this region , FDI makes up the largest pie thus accounting to be the single most decisive factor in transformation of Asia as a global economic power to reckon with . This flow of capital helped its recipients to optimize the investment environment for attracting more FDI even the countries like China which had remained...