The Role of Foreign Direct Investment (FDI) 4.5

The Role of FDI in Development Quizlet

IB Syllabus Requirements

Foreign direct investment and multinational corporations (MNCs)

The meaning of FDI and MNCs

• Describe the nature of foreign direct investment (FDI) and multinational corporations (MNCs).

• Explain the reasons why MNCs expand into economically less developed countries.

• Describe the characteristics of economically less developed countries that attract FDI, including low cost factor inputs, a regulatory framework that favours profit repatriation and favourable tax rules.

Advantages and disadvantages of FDI for economically less developed countries

• Evaluate the impact of foreign direct investment (FDI) for economically less developed countries.

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Day 1

Notes from “4.5 – The Role of FDI”

4.5 - Role of FDI.pptx

Some problems with FDI: environmental degradation and pollution in LDCs (Case Study: China and e-waste) also China's Belt and Road Initiative. What are the benefits to the developing nations that China is trying to build in? What are the costs? Evaluate whether or not you think this is good for the overall development of nations.