What are the main advantages and disadvantages of foreign direct investment as a means of entering new markets? Support your answer with real examples‚ where possible. Introduction Globalization describes the process by which regional economies‚ societies‚ and cultures have become integrated through a global network of communication‚ transportation‚ and trade. Bhagwati (2004). Big part of globalization is Foreign Direct Investment. Foreign direct investment (FDI) can be defined as the
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Advantage (depending upon implementation some of these can turn into disadvantages) employment (1 emp/1000 tourist) (labor intensive‚ few administrative positions‚ little upward mobility.) infrastructure development (roads‚ water‚ electricity‚ telecom and cybercom‚ but not necessarily local priorities.) cultural preservation (economic incentives to preserve food‚ fashion‚ festivals and physical history‚ but these tend to be superficial elements of a culture.) environmental protection (econ incentives
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How many phenomenons have a global impact? If you are to count‚ they could be counted on your finger tips. Globalization is one of them. So before going to the advantages and disadvantages of globalization‚ lets us try to grasp this concept first. Simply put‚ globalization is an ongoing process of integration of regional economies into global network of communication and execution. Let me explain this a bit. Assume that you are a mango farmer in India and you grow very good quality mangoes over there
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Advantages and Disadvantages of Outsourcing Outsourcing is an allocation of specific business processes to a specialist external service provider. Most of the times an organization cannot handle all aspects of a business process internally. Additionally some processes are temporary and the organization does not intend to hire in-house professionals to perform the tasks. Once the task is outsourced to the service provider‚ he will take the responsibility of carrying out the tasks and maintaining
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Advantages and Disadvantages of Renewable Fuels Solar Energy: Advantages: -Energy is free although there is a building cost. -Causes no pollution‚ however‚ energy may go into machines that produce pollution. -Solar energy can be used in remote areas where it is too expensive to extend the electricity power grid. -Estimated that the worlds oil reserves will last for 30-40 years whereas solar energy is infinite. Disadvantages: -Solar energy can only be harnessed when it is daytime
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Advantages and Disadvantages on Globalization The advantages and disadvantages of customizing products can be summarized as following points. Advantages: 1. Innovation ideas‚ which are suitable to adapt changeable customers’ preferences. With the development of technology‚ customers preferences are always updated due to global information transmit. Global Managers are capable to create more inventive products to keep and expand global markets. 2. Localization‚ which can avoid cultural conflict
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only benefits‚ but further consideration shows that it also has disadvantages. It can be admitted that tourism offers many advantages. The most obvious advantages is generating huge amounts of money which contributes considerably to the economic growth of an area. By attracting people from almost everywhere‚ the area can get much money in order to develop the other essential public services such as hospitals and schools. Another advantage is giving the citizen of the area the chance to escape poverty
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Advantage and Disadvantage of AEC 1 Business of Tourism in Thai will grow: Because Thai is the center of the AEC according on geographic then Thailand will be the main hub for travelling though other country 2Economic Growth: more opportunity for each country because of the bigger size of market and free flow of labor and capital 3 Free Trade Area a common external preferential tariff scheme to promote the free flow of goods within ASEAN.[44] The ASEAN Free Trade Area (AFTA) is an agreement
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Revolution‚ technology has served as a tool to improve the standard of living in most countries. We receive a lot of benefits from modern technology in everyday life. The benefit can be so great that you notice it‚ or something small you can take for granted. Modern technology has solved many problems that people face and play an important role in the development of many countries. Modern technologies create many kinds of products and also a heated controversy. Computers‚ cloning technology‚ and video
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Advantages and disadvantages of television viewing In this new era of science and technology‚ we have incorporated technology into our everyday lives. In fact‚ we cannot live without electrical appliances that we call necessities and the television is one of them.Much has changed since the first television was invented - from black and white to colour televisions. For some‚ the television is a window to the modern world. By viewing the programmes that are aired on television‚ we can gain a lot
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