The pros and cons of FDI

Đoàn Uyên Thảo Mã SV : 1311110629 What are the advantages and disadvantages of FDI for host country In the trend of global economic integration at present, our country stands at the threshold of the open with large market and FDI (Foreign Direct Investment) is one of the main factors that are seen as resources to promote economic growth in the country Viet Nam has emerged as a host country to attract a lot of FDI flowing However, how to take advantage of opportunities as well as accept the challenges that FDI brings to the economy is very essential to all of us if we want to use it effectively and bring more economic benefits to get ready appropriate experiences for Vietnam's economy now in the time when international organizations and funding problem seems to be an important issue and indispensable high practical significance Therefore, this essay will give us a general view about the pros and cons of FDI for host countries On one hand, FDI has a lot of important functions for host country, esspecially the one from the developing world First of all, it is a source of support for development in the host country As you know, FDI is one of the important sources to offset the shortage of foreign currency funds of domestic investment, especially for the less developed countries Investment capital is the basis to create domestic jobs, technological innovation, technology, labor productivity growth etc It is reason why that increases income, the wealth increase for social development Secondly, FDI help stransfer technologies Important benefits that FDI brings about are modern science, refined engineering expertise, advanced management level Once investing in a certain country, the investor not only invests in monetary funds but also transfers both physical capitals such as machinery, equipment, materials, wise management skill, market access capabilities FDI can promote the development of new industries; especially the industry requires a high technology Therefore, it has great impact on the process of industrialization and economic structural shift for host nations FDI brings into management experience, business skills and technical qualifications to partners in host countries, through training programs and the process of learning by doing FDI gives them the knowledge production while receiving the complex technology of the investment FDI also promote the host countries have tried to train the engineers, the managers being qualified to participate in joint ventures with foreign partners It is a tool for Economic promotion Obviously, foreign direct investment has contributed to positive economic boost in the developing countries It is a base to exploit the huge potential in the country to develop the economy The fact and experience of many countries show that countries implementing opening economic strategies to the outside will take advantages of the external factors that turned it into the internal factors, which creates higher growth rates On the other hand, FDI can ... economic strategies to the outside will take advantages of the external factors that turned it into the internal factors, which creates higher growth rates On the other hand, FDI can ... to positive economic boost in the developing countries It is a base to exploit the huge potential in the country to develop the economy The fact and experience of many countries show that countries