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It is generally agreed that foreign direct investment is a good vehicle for the economic development of poor countries and it should replace foreign debt. This suggestion appeals to many countries mainly because to borrow has become very challenging and it will likely lead to accumulation of debt. As an option for development finance, it is likely to place a burden on the budget of the economy. Your country is thinking of making a policy shift from borrowing to reliance on FDI. However, you realize that many people, especially in government, are not very supportive of this idea and they are not sure how it can work. You have been approached and appointed as a consultant to help the government achieve this policy shift. Your brief is to develop a concept paper that will focus on the following: a) Provide a discussion of the benefits and problems associated with FDI inflows into the country. b) The challenges the country has faced in trying to attract more foreign direct investments and why. c) Recommendations on what the country should do to attract adequate inflows of FDI.

It is generally agreed that foreign direct investment is a good vehicle for the economic development of poor countries and it should replace foreign debt. This suggestion appeals to many countries mainly because to borrow has become very challenging and it will likely lead to accumulation of debt. As an option for development finance, it is likely to place a burden on the budget of the economy. Your country is thinking of making a policy shift from borrowing to reliance on FDI. However, you realize that many people, especially in government, are not very supportive of this idea and they are not sure how it can work. You have been approached and appointed as a consultant to help the government achieve this policy shift. Your brief is to develop a concept paper that will focus on the following: a) Provide a discussion of the benefits and problems associated with FDI inflows into the country. b) The challenges the country has faced in trying to attract more foreign direct investments and why. c) Recommendations on what the country should do to attract adequate inflows of FDI.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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It is generally agreed that foreign direct investment is a good vehicle for the economic development of poor countries and it should replace foreign debt. This suggestion appeals to many countries mainly because to borrow has become very challenging and it will likely lead to accumulation of debt. As an option for development finance, it is likely to place a burden on the budget of the economy. Your country is thinking of making a policy shift from borrowing to reliance on FDI. However, you realize that many people, especially in government, are not very supportive of this idea and they are not sure how it can work. You have been approached and appointed as a consultant to help the government achieve this policy shift. Your brief is to develop a concept paper that will focus on the following: a) Provide a discussion of the benefits and problems associated with FDI inflows into the country. b) The challenges the country has faced in trying to attract more foreign direct investments and why. c) Recommendations on what the country should do to attract adequate inflows of FDI.
Transcribed Image Text:It is generally agreed that foreign direct investment is a good vehicle for the economic development of poor countries and it should replace foreign debt. This suggestion appeals to many countries mainly because to borrow has become very challenging and it will likely lead to accumulation of debt. As an option for development finance, it is likely to place a burden on the budget of the economy. Your country is thinking of making a policy shift from borrowing to reliance on FDI. However, you realize that many people, especially in government, are not very supportive of this idea and they are not sure how it can work. You have been approached and appointed as a consultant to help the government achieve this policy shift. Your brief is to develop a concept paper that will focus on the following: a) Provide a discussion of the benefits and problems associated with FDI inflows into the country. b) The challenges the country has faced in trying to attract more foreign direct investments and why. c) Recommendations on what the country should do to attract adequate inflows of FDI.
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