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Abstract

In recent years, few things have created such a debate as the impact of foreign direct investment (FDI) on the country?s economy. While a school of thought argues in favour of greater FDI into the country, another school focuses on the repercussions FDI is likely to have on the domestic industry. While traditionally FDI has flowed into manufacturing, of late a discernible trend is towards FDI in services. The case traces the roots of this movement of FDI in the services and discusses the impact, positive or negative on the country?s economic growth. The case can be used to teach the following points to students of international and developmental economics: (1) FDI and the country?s development; (2) the importance of FDI in services; (3) the factors behind the shift in FDI from manufacturing to services; (4) the future trends of FDI; and (5) the theories of international trade and FDI inflows.
Location:
Industry:
Other setting(s):
2004-2005

About

Abstract

In recent years, few things have created such a debate as the impact of foreign direct investment (FDI) on the country?s economy. While a school of thought argues in favour of greater FDI into the country, another school focuses on the repercussions FDI is likely to have on the domestic industry. While traditionally FDI has flowed into manufacturing, of late a discernible trend is towards FDI in services. The case traces the roots of this movement of FDI in the services and discusses the impact, positive or negative on the country?s economic growth. The case can be used to teach the following points to students of international and developmental economics: (1) FDI and the country?s development; (2) the importance of FDI in services; (3) the factors behind the shift in FDI from manufacturing to services; (4) the future trends of FDI; and (5) the theories of international trade and FDI inflows.

Settings

Location:
Industry:
Other setting(s):
2004-2005

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