Answer to Question #169957 in Management for Busie

Question

Using a relevant example, examine FDI in the context of globalization. 

Answer 1

Firstly, the concentration of direct investment in some countries promotes the communal aspect of selective integration of specific arrears in the global economy. For example, in west Africa, there exists a positive relationship between economic growth and globalization. Notably, FDI promotes the economic development in the region. At the same time, political administration plays a big role in stimulating the positive influence of FDI on economic development.