Foreign Direct Investment (FDI) Essay Example | Topics and Well Written Essays - 2500 words

Foreign Direct Investment (FDI) - Essay Example Foreign direct investment has increasingly been a business trend of multinational corporations within the global economy.Foreign Direct Investment is defined by Ho and Yiu Lau as the investment of a company in a foreign country which aims at acquiring a long-term economic interest in business enterprises within the host country. FDI can also be defined as an investment of a company in a foreign country by building a factory within the host country. It is through a company’s direct investment in machinery, building and equipment in another country that foreign direct investment is made possible. With the emergence of globalization and the global economy, FDI has played a leading role in the development of global business enterprises. Kennedy (2001, p. 585) say that the definition of foreign direct investment has been broadened with the increased change in the patterns of global investment by companies. As a result, FDI includes acquisition of managerial interests in companies a nd enterprises in foreign countries. The managerial interest may not involve investment in buildings or equipment but managerial decisions are determined by executives who are foreign to the host country. The rapid growth of companies which is attributed to the internationalization and use of technology has expanded FDI to incorporate the growth patterns of world economies as demonstrated by Constant and Yaoxing (2010, p. 99) Foreign direct investment is a reaction to the increased liberalization of business activities, changes and advancements in information and communication technology and capital market changes. Jermakowicz and Bellas (1997, p. 33) explain that through the liberalization of national and regional business regulatory frameworks and governance, foreign direct investment has been achieved. Globalization has enabled foreign direct investment to be achieved by international companies and corporations. It is however argued that information and communication technology h as played the most significant role in the achievement of foreign direct investment. Technology has allowed companies to invest in foreign countries due to the ease of management that is made possible through the adoption and implementation of information systems. In return, foreign direct investment has enabled the process of internationalizing businesses and companies hence promoting the growth of the global economy as said by Fahim-Nader and Zeile (1995, p. 57). Foreign direct investment can take several forms. According to Driffield and Munday (2000, p. 21), there are many forms of foreign direct investment and these include joint ventures, construction of facilities, acquisitions, mergers, strategic alliance, licensing and input of technology. Joint ventures as a form of foreign direct investment includes a company engaging in a business endeavor with another company within a foreign country. The business activities of the joint venture are usually carried out within the host c ountry. Joint ventures within foreign direct investment include two companies from two different countries coming together with an intention of undertaking a business in a specific industry for achievement of common goals. Belderbos, Jie-A-Joen and Sleuwaegen, (2002, p. 155) assert that in foreign direct investment, companies may construct facilities such as factories, hospitals, institutions or infrastructure in a foreign country. This form of foreign investment thus involves direct and active input of capital for construction of these facilities. The investor company that ventures in the foreign direct investment through building structures usually takes the ownership of these structures even though they provide economic benefits to the host country. Lowe (2006, p. 34) explains that acquisitions as a form of foreign direct investment includes a company acquiring the assets of another company within the foreign country. The acquisition of a foreign company makes the investing compa ny the

American history - essay - about The Black Cat Example | Topics and Well Written Essays - 500 words

American history - - about The Black Cat - Essay Example My interaction with the narrator as his pet was awesome at first. The fact that I was following him step by step means that we were compatible in various aspects. It felt good when I was being favored through exclusion from harassment while others in the house were being mistreated (Poe and Andrewasine 79). Being singled out when others were being mistreated always gave me a reason to stick to the narrator. It also strengthened the instincts between us. I felt special by being singled out among the pets that he had and even introduced me to his wife as his favorite pet of all. Our relationship, however, was mysterious and also supernatural in nature an element that was also evident in the gothic genre. The emotions of the narrator, however, ruined the friendship that was in existence and our sound interaction changed drastically to become sour. The person I was always comfortable when we were together became the person I was to run from. The drunkenness changed the narrator I knew to someone close to a murderer (Poe and Andrewasine 76). It was unbelievable to see him attacking me and even plucking one of my eyes irrespective of our cordial relationship that had been in existence. This interaction taught enlightened me that people changes and there have been something sinister with the narrator. It is weird for a close ally to become a monster within a very short time frame. The monstrous aspect resembles the gothic set up aspect and element. With such mistreatments, it was evident that the best way of living with the narrator is avoiding him. However, this interaction created dilemma in my life on the best mode of living that would assure me of survival. This is because after he perceived that I was avoiding him he plucked one of my eyes (Bloomfield 249). On the other hand, it is very insecure to stay close to such a person. However, it was unbelievable seeing the narrator holding me in a manner that