Explain the pragmatic approach to foreign direct investments

Assignment Help Microeconomics

Reference no: EM133494520

Problem I. How do FDIs contribute to the economic development of a country?

Problem II. Define and give examples of the following FDIs in the Philippines today:

i. Greenfield investment
ii. Brownfield investment
iii. Horizontal FDI
iv. Vertical or forward FDI

Problem III. Explain the pragmatic approach to foreign direct investments. Give another example apart from what was mentioned in the book, i.e., One Belt One Road (OBOR) infrastructure projects of China

Problem IV. How do foreign direct investments affect the gross domestic product of a country? Show the implication on the formula, GDP = C+ I + G + (X- M).

Problem V. Think of a multinational corporation currently operating a business in the Philippines. What can you say about our dependency on this MNC and what would happen if they withdrew operations tomorrow?

Problem VI. How can an FDI or an MNC be a more specific contribution to the worsening problem of corruption in government?

Problem VII. Loosening regulations is one way to entice MNCs to invest and move their operations in the country. How can our own local brands of businesses be protected amidst the threat of much cheaper products that are offered by these companies?

Problem VIII. One successful outward FDI of the Philippines is the case of Jollibee Corporation. How can this contribute to the Philippine economic growth and development?

Problem IX. How can we improve on these aspects to encourage more FDIs in the country?

i. Infrastructure development
ii. Communication and transportation
iii. Political security
iv. Corruption

Problem X. Recently, the Philippines allowed 100% investment in Internet businesses to the country, changing the Foreign Investment Negative List (FINL). Do you think this wil help us with our economic development? Why or why not?

Reference no: EM133494520

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