Foreign Direct Investment: Benefits and Consequences for Developing Countries

The video explores foreign direct investment (FDI) as a market-oriented strategy, focusing on its impact on developing countries. It discusses the types of FDI, such as Greenfield investments and mergers, and highlights trends in FDI flows. The video examines why multinational corporations invest in developing countries, citing natural resources and lower costs. It outlines the advantages of FDI, including job creation and technology transfer, while also addressing potential disadvantages like MNC dominance and environmental concerns. The video concludes by emphasizing the dual benefits for companies and host countries.

What trends have been observed in global FDI flows from 2005 to 2015, particularly towards developing countries?

What are the potential risks for a country that becomes too reliant on FDI?

Describe the role of joint ventures in enhancing the effectiveness of FDI.