International Business

Foreign Direct Investment in Three Regions of the South at by Susan M. McMillan

By Susan M. McMillan

Overseas direct funding is a vital a part of an more and more international political financial system. This e-book explores the implications of this funding in six international locations within the international South. the rustic comparability chapters element the political and monetary events of those international locations, and their guidelines and reviews with overseas direct funding. One bankruptcy examines the statistical styles between international direct funding and its anticipated results. The research exhibits that the consequences of overseas direct funding are formed via latest improvement styles.

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Extra info for Foreign Direct Investment in Three Regions of the South at the End of the Twentieth Century

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Because it does well initially, the country remains attractive to potential investors and individual investment projects are negotiated such that the terms benefit the host as well as the MNC. In such cases, the aggregate results are more likely to be favourable for the host. Thus, I expect that long-term economic growth, development and mass political stability will be seen as consequences of FDI in host countries with context conditions that contribute to relatively high bargaining power. A virtuous cycle - which would tend to support the modernization perspective - would be seen in countries with relatively strong economic factors and with FDI flows that seem to produce continuing strong growth.

In direct contrast to the Philippines, when the Western powers arrived in Thailand they encountered an absolute monarchy and extreme centralization of power in the hands of the king (Stowe, 1991; Suehiro, 1989:278-9). In the mid to late-1800s the monarchy started to develop Western-style institutions in the Thai setting. Institutions such as a parliament, bureaucratic apparatus, political parties and a free press were adopted (see Riggs, 1966). Some important consequences followed from the domestic adaptation of these types of foreign political institutions.

It also limits the willingness of the state to make policies that bring on, or are perceived to bring on mass instability. The matter is complicated further by the possibility that political instability is itself a potential outcome of FDI. So, if FDI does actually cause mass instability, a process of reciprocal causality is working. Ideology and state strength, or state capacity (Jackman, 1993), representing political will and ability respectively, are expected to be important for bargaining leverage, particularly as they interact with one another.

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