The Impact Of Foreign Direct Investment On Nigeria

THE IMPACT OF contrary DIRECT investiture fundsS ON THE NIGERIAS ECONOMY By Chibuzo Okonkwo INTRODUCTION alien prepare investment (FDI) plays an extraordinary and growing role in international business. It washbasin leave al single a firm with upstart markets and marketing channels, cheaper production facilities, access to sweet technology, products, skills and financing. For a legions country or the foreign firm which receives the investment, it burn down provide a reference point of new technologies, capital, processes, products, organizational technologies and management skills, and as such can provide a strong momentum to economic development.     international direct investment, defined as a company from one country make a animal(prenominal) investment into building a factory in another(prenominal) country.  The direct investment in buildings, machinery and equipment is in contrast with making a portfolio investment, which is considered an indirec t investment. THE IMPACT OF FOREIGN DIRECT INVESTMENT ON DEVELOPING COUNTRIES The most complicated effect has been seen in developing countries, where yearly foreign direct investment flows admit increased from an add up of less than $10 jillion in the 1970s to a yearly average of less than $20 billion in the 1980s, to explode in the 1990s from $26.

7billion in 1990 to $179 billion in 1998 and $208 billion in 1999 and now form a large portion of global FDI..   Driven by mergers and acquisitions and internationalization of production in a range of industries, FDI into true countries last year rose to $636 billion, fr om $481 billion in 1998 (Source: UNCTAD) The! se argon highly beneficial to the recipient economy. In addition, FDI helps in bridging the capital famine gap and complement home(prenominal) investment especially when it flows to a high risk areas of new firms where domestic resource is limited Generally, policies and strategies of Nigerian government towards foreign direct investments are shaped by two forefront objectives of desire for economic independence and the...If you lack to get a full essay, order it on our website: OrderCustomPaper.com

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