Beruflich Dokumente
Kultur Dokumente
Prepared by:
AbishDahal
reree
11-1
Benefits and Costs of FDI
11-2
Host Country Benefits
11-3
Host Country Benefits
11-4
Host Country Benefits
3. Balance-of-Payments Effects
• A country’s balance-of-payments account is a record of a
country’s payments to and receipts from other countries
• The current account is a record of a country’s export and
import of goods and services
• A current account surplus is usually favored over a deficit
• FDI can help achieve a current account surplus
– if the FDI is a substitute for imports of goods and services
– if the MNE uses a foreign subsidiary to export goods and
services to other countries
11-5
Host Country Benefits
11-6
Host Country Costs
11-7
Host Country Costs
11-8
Host Country Costs
11-9
Host Country Costs
11-10
Home Country Benefits
11-11
Home Country Costs
11-12
Home Country Costs
11-13
Government Policy Instruments
and FDI
11-14
Home Country Policies
11-15
Home Country Policies
11-16
Host Country Policies
11-17
Host Country Policies
11-18
Government Policy
11-19