The Impacts of International Expansion by Foreign Direct Investment in Essay

The Impacts of supranationalistic Expansion by Foreign Direct Investment in European Countries - Essay Example other sources are acknowledged by footnotes giving explicit references. A bibliography is appended Signed .. Date .. STATEMENT 3 I hereby give consent for my dissertation, if accepted, to be available for photocopying and for inter-library loan, and for the title and summary to be do available to outside organisations. Signed .. Date .. Abstract Prior to the 1960s, it was generally perceived that international intricacy would flow primarily from countries with capital abundance into countries with little capital. Foreign Direct Investment (FDI) in the mid-fifties were primarily occurring among businesses in horse opera Europe and North America. The result was international magnification was limited to the bound that capital was not shared globally (Oxelheim and Ghauri 2004, p. 323). Essentially, developed countries dominated both the source and host venues for FDI flo ws. square changes occurred in the 1990s that would have profound consequences for international expansion through FDIs in Europe. ... Even so, the international expansion of Europe by FDIs has not developed as expected. With the expectation that a number of rudimentary and Eastern Europe (CEE) countries will eventually become members of the European Union, several questions relative to the impacts of international expansion in Europe arise. The first question is whether or not this prospect will contribute to European internationalization via FDIs. This paper investigates this question since Europe represents a unique conglomeration of developed and developing countries, an inbred feature of the internationalization. The main objective is to ensure that developing countries share in international capital flows. other relevant question for investigation is whether or not FDIs will introduce the skill and capital infallible for modernizing CEEs in Europe or will it encourage mon opolies and rent-seeking practices. If the FDI can be beneficial in footing of internationalization in Europe, what factors are essentially fueling its development and growth and what can European countries do to make the FDI more appealing? Ideally, the impact of internationalization by FDIs in Europe should be the proviso of cheap labor with a reciprocal infusion of capital for the funding of privatization and industrialization (Morgan, Kristensen and Whitley 2003, pp.43-44). In this regard, Western European and other foreign companies would assist in the transitioning of these socialist states to open-market economies by not only providing investiture capital, but by virtue of technology and management transfers. This is the intended consequence of economic integration under the auspices of internationalization. More importantly, this is the way forward if Europe intends to achieve its goal of