Economy

Name: Fatima abu hmeidan

Date : 02/09/2016

ECON101

Assignment number: 2 ( reading assignment)

FOREIGN DIRECT INVESTMENT IN EMERGING AND DEVELOPED ECONOMIES

Tatiana Dănescu 1

Paula Nistor2

FOREIGN DIRECT INVESTMENT IN EMERGING AND DEVELOPED ECONOMIES.

Introduction:

"Foreign Direct Investment in Emerging and Developed Economies" is paper written by Tatiana Dănescu and Paula Nistor aiming to understand and analyze the effect of foreign direct investment (FDI) in emerging and developed economies. In order to do that data consisting from the annual FDI inflows between the periods of 1990 - 2010 we used for these economies. The paper was published in the Annales Universitatis Apulensis Series Oeconomica 14(1) ,at January, 2012.

FDI is defined according to the international monetary fund as an investment made by a company or entity based in one country, into a company or entity based in another country to obtain a long term interest in that company. Foreign direct investment has become a very important input in foreign capital and greatly effected economic growth, production structure, and foreign trade in all over the globe. Which lead to an increase demand to obtain to a foreign capital?

Foreign direct investment in developed and emerged economies

The main position for this paper according to (T, Dănescu) and (P, Nistor), is to study the importance, evolution and effect of FDI in developed and emerged economies and wither FFDI inflows is effect by economic changes such recessions, economic crisis's and political situations.

(T, Dănescu) and (P, Nistor) study found the following:

The demand on foreign direct investment has become very important for emerging economies in 1990; the demand has led to an increase in the global sales of multinational cooperation's, which made FDI to be more important than trade in the terms of supply to the foreign markets.

The drop down FDI inflows in both the emerging and the developed...