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BA Tuition > Learn BA Tuition > FDI is beneficial for host country or not?
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FDI is beneficial for host country or not?

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leads to employment generation directly and at the same time it makes scope for many ancillary units which further.
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Tutor

FDI leads to employment generation directly and at the same time it makes scope for many ancillary units which further generate employment. This helps in the development process of the host country.
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Tutions

Yes
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Accountancy for CBSE, ISC, PUC 11th/12th, BBA, BCom and MBA

yes, it is highly beneficial for the economic development of the host nation.
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Tutor

Definitely host country benefits
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Trainer

Foreign direct investment (FDI) influences the host country’s economic growth through the transfer of new technologies and know-how, formation of human resources, integration in global markets, increase of competition, and firms’ development and reorganization. Empirically, a variety of studies considers...
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Foreign direct investment (FDI) influences the host country’s economic growth through the transfer of new technologies and know-how, formation of human resources, integration in global markets, increase of competition, and firms’ development and reorganization. Empirically, a variety of studies considers that FDI generate economic growth in the host country. However, there is also evidence that FDI is a source of negative effects. Given this ambiguity of results, the present paper makes a review of the existing theoretical and empirical literature on the subject, intending to shed light on the main explanations for the divergence of results in different studies. The main idea that stands out in this review is that the effects of FDI on economic growth are dependent on the existing or subsequently developed internal conditions of the host country (economic, political, social, cultural or other). Thus, the host countries authorities have a key role in creating the conditions that allow for the leverage of the positive effects or for the reduction of the negative effects of FDI on the host country’s economic growth read less
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French Language, Hotel Management Entrance, Management & Tourism teacher

Yes. In today's globalised economy it is highly recommended.
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Tutor

FDI is beneficial to host country based on what objective it is being brought in. Employment generation, technology transfer, improving productivity etc. The terms of FDI outflow has also to be evaluated. Many investors bring in only for short term profits and take it out immediately when economy is...
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FDI is beneficial to host country based on what objective it is being brought in. Employment generation, technology transfer, improving productivity etc. The terms of FDI outflow has also to be evaluated. Many investors bring in only for short term profits and take it out immediately when economy is floundering in host country. Hence no simple answer. read less
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Talented Economics Teacher

Yes it is indeed beneficial for the recipient country provided that the country is export oriented since then it can favorably affect the balance of trade. Although exceptions happen and such cases are known as immesarising growth.
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Professor

As per the FDI it is benifit for both the host AND HOME COUNTRY but it is important that FDI should get approved by RBI then only it is benifited to host country. for brief introduction please refer text book of international business ref:- Agrawal publication
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