23 Jun HOW DO POLITICAL INSTITUTIONS AFFECT FOREIGN DIRECT INVESTMENT?
How do political institutions affect foreign direct investment?
The field of International Political Economy (IPE) have seen a tremendous amount continuous change in both the past and recent time. The climate and conditions within the theoretical and practical aspects of the field are ever-changing and have led to a volatile political and economic landscape to form. This essay will focus on one aspect of IPE that have relatively quickly risen to become imperatively influential and important for the developments in the field, that aspect is Multinational Companies (MNC) and their Foreign Direct Investments (FDI). MNC’s role and the importance of FDI are multifaceted within the international sphere; the use of FDI does not only constitute possible cuts in production cost and increased revenue for the investor but FDI is today an important aspect for state economies as well. FDI does today represent a large part of many states’ GDP and is also a vital part in progressing economic growth and development the developing world.
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