In order to encourage FDI, government policy is viewed as necessary. It is detrimental to international trade as a whole? What about...

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FDI is a short form of Foreign Direct Investment which is refers to an investment made to acquire lasting or long-term interest in enterprises operating outside of the economy of the investor. The investment is direct because the investor, which could be a foreign person, company or group of entities, is seeking to control, manage, or have significant influence over the foreign enterprise.

As everyone knows, that Outsourcing is an arrangement in which one company provide services for another company that missing or don’t have a specialty on certain area of expertise. Outsourcing is a trend that is becoming more common on information technology and other industries for services that have usually been regarded as intrinsic to managing a business.
Nowadays, Outsourcing is the famous and important things in business. Outsourcing also to describe in practice of handling over the control of the public services for profit organization. With outsourcing, all the task that company must do, company will give the project to another company to do the project. Outsourcing is good strategy to finish the task that the company can’t do, outsource is to avoid losses of cost. There a reason why companies like to outsource the project, which are too avoided of regulation, high tax, cost of energy, in other word are to avoid taxes for government. With the reduce of costs, management sees the opportunity for short run of the profits, meanwhile the income increase of the consumer based are strained. Beside the benefit of the outsourcing, there are some of disadvantage in outsourcing which are the risk of exposing the confidential data.
Although outsourcings most of the times are for cost effective or in other words are cost saving...

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3. Barry Kolodkin. 2014. US Foreign Policy. Available at: http://usforeignpolicy.about.com/od/introtoforeignpolicy/a/what-is-FDI.htm [Accessed 5 March 2014].

4. Dirk Willem te Velde. 2001. OECD Development Centre. Available at: http://www.oecd.org/dev/2698620.pdf [Accessed 5 March 2014].

5. Vienna. 2009. United Nation Industrial Development Organization. Available at: http://www.unido.org//fileadmin/user_media/Publications/Research_and_statistics/Branch_publications/Research_and_Policy/Files/Working_Papers/2009/WP%2001%20FDI%20Policy%20Instruments%20-%20Advantages%20and%20Disadvantages.pdf [Accessed 6 March 2014].

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