Foreign Direct Investment Essay Example | Topics and Well Written Essays - 2000 words

Foreign Direct Investment - Essay Example In essence, FDI gives the investor the power to operate a company in another country for the long term. Developed host countries are not too welcome to the idea on the premise that they fear foreign firms will end up dominating their local firms. In contrast to this, developing countries are more welcome to the idea on the grounds that FDI will bring additional capital, expertise and new technology into their country. (Contessi & Weinberger, 2009). Host countries record FDI flows as liabilities along with similar items in their balance of payments. In host countries like these FDI flows make up a large percentage of the total investment in the economy as compared to more developed countries; the effects of FDI on these countries differ as well, with developing countries showing a steady growth trend as compared to developed countries who showed boom and bust cycles as a result of engaging in FDI. (Contessi & Weinberger, 2009). Growth is normally measured by looking at the trends in p er capita GDP growth. Analysts relate FDI to per capita to GDP growth by looking at figures of gross FDI inflows and FDI inflows per capita to see if they have any impact on the economic growth of a country. Research has revealed a positive relationship between FDI levels and growth levels in an economy, in some cases these results have been insignificant as well but these variables have never shared a negative relationship. Extraneous variable have a magnitude changing effect on this relationship. It has been seen that, the more developed a country is, the better and greater positive effect FDI will have on its economic growth. (Contessi & Weinberger, 2009). Most studies that have analyzed the impact of FDI on the economic growth of the host country have found the results to be pretty elusive. Most established relationships are based specifically on the host country’s own specific economic characteristics. Thus it is difficult to generalize these effects and apply them to ot her countries as the findings of a study. However, the probable effects are not completely elusive, as the endogenous growth theory provides framework for the positive linkage between growth and FDI inflows. (Johnson, 2005). A study found that FDI can have a positive effect on growth, given that the host country promotes exports simultaneously. (Balasubramanyam et al, 1996). Another study showed that FDI had a positive impact on growth, but this effect was to be directly proportional to the host country’s level and quality of human capital. (Borensztein et al, 1998). A further study conducted on 50 developed and developing countries also found FDI to be positively impacting host country’s growth rate. (Olofsdotter, 1998). Research revealed that FDI and growth have a positive relationship, the magnitude of which depends on the specific economic conditions of the country in question. (Zhang, 2001). Another study based on research on Latin American countries also had simi lar findings. (Bengoa & Sanchez-Robles, 2003). Some studies on the other hand, found a weak link between FDI and economic growth based on research done on a mix of developed and developing countries. (De Mello, 1999). Other studies, like the one which conducted research on a mix of 72 developing and developed countries found that FDI

Design history Essay Example | Topics and Well Written Essays - 500 words

Design history - Essay Example ifferent time periods and thus have different styles,, Lucian Bernhard’s Priester Matches (1905), and Stefan Sagmeister, AIGA poster (1999 they are all innovations that derive from the social problems at that time and given place. It is significant that these innovations were made to solve social problems. William Morris’s design of a chapter cover for Ruskin, The Nature of Gothic, clearly shows that it evolved from a social concern in which the Industrial Revolution caused a deficiency of aesthetic advertising and artwork. People did not want to spend their time on flyers that ultimately disappear and be surpassed with new artwork within a few days. William Morris realized that this problem came out of the Industrial Revolution and he attempted to fill society with beauty through decorative and ornamental artwork. He believed that beautiful designs would benefit the people and help to build morality in the people as well. Thus, his beliefs are clearly demonstrated in his design. As a leader of the art and crafts movement, he used very ornamental decorations on the borders of the cover and he showed how he considered aesthetics as an important part of his design. He borrowed medieval imagery and adapted it to a style more suited to the 19th century. His designs helped propel th e art and crafts movement and replaced amateur designs, which lacked aesthetics. Similarly, Bernhard’s innovation was also one of the most successful designs that met the social needs of the day. After the Industrial Revolution, many new businesses were established. At that time, every company’s advertisements followed Art Nouveau. The typical advertisement of the day was busy and crowded looking. Within this vast amount of companies, it was really hard to identify one from another. In contrast to the ornamental and decorative style that dominated advertising and artwork at that time, Bayer’s design was definitely an innovative style. Unlike other advertisements, he did not use