In this paper, you are asked to present discussion containing theories on FDI, cost and benefits of FDI. Also provide trend analysis of FDI data on your chosen country with reference to world trade.
Topic: Although historically most FDI has been directed to developed nations, FDI into developing nations has increased significantly over past 20 years. Discuss main theories explaining FDI and examine costs and benefits of FDI using FDI data from World Bank database for a country of your choice.
World Bank: http://www.worldbank.org/ . Go to “Data” section, search for “Foreign direct investment, net inflows (% of GDP)” using the “Find an indicator” window. It will direct you to FDI data for most countries in the world. You choose one country of your interest.
The coursework should contain the following three main parts, plus a brief introduction and conclusion.
Theories on FDI (40%)
Product life cycle theory:
Economies of scale:
Porters Diamond model:
The Heckscher-Ohlin theory:
2. Costs and benefit of FDI (general discussions) (30%)
3. Trend analysis of FDI data for your chosen country or countries with reference to world trend (30%)