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Title: Foreign Direct Investment And Foreign Trade Regimes
Essay Details
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Science |
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| Date: |
November 14, 2005 |
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| Length: |
22 / 6039 |
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Essay text:
In the decision of foreign investor, the trade policy regime plays a decisive role. A great amount of work followed by Bhagwati (1973) has explored the importance of trade regime in benefitting the host countries in terms of economic growth and economic activity (Bhagwati, 1978, 1985, 1994; Brecher and Diaz-Alejandro, 1977; Brecher and Findlay, 1983)... Showed first 250 characters
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The main premise of the studies conducted is that those countries gain more from FDI which follow the export promotion trade regime rather than those working under the protection of import substitution policies.
The main reason that makes the impact of the trade policies different for the countries operating under different trade regimes is that countries working under IS regime target very small domestic market of the consumers whereas the countries with more open policies of EP regime have bigger international target customer market... Showed next 250 characters
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