Developing a Quantitative Research Plan Coursework

Developing a Quantitative question Plan - Coursework ExampleForeign direct investment in the host dry come is made because of many another(prenominal) factors which include cheap labor in the province, special facilitation of the government of host country to foreign country such as low tax rate or tax exemption, or the vast job opportunities in the host country. close totimes FDI is made in a country which is nearby to the sea land or from where foreign companies find near location from its buyer and seller (Atique, Ahmad, and Azhar, 2004).The importance of FDI for host countries is evening more than the foreign investors. It makes an improve balance of payment summary for the host countries. Countries that have higher FDI be always in a fruitful position and their thrift boost rapidly. It also reduces the trade barriers surrounded by the host country and foreign companies. Furthermore, through FDI the host country not only receives the cash inflow but also new technolog ies, new innovative procedure and products are transferred. Through FDI, host country also receives their management skills and expertise which help for local domestic companies (Li and Liu, 2005).Some researchers argues that the involve of FDI on economy growth of the host country depends on the condition of the country, its political and government stability (Freckleton, Wright & Craigwell 2010). While rough studies claimed that FDI does not lead to the growth of the host country where there is a lacking of absorbing it (Borensztein et.al., 1998 Hermes and Lensink, 2003).Some studies argue that the important factor of FDI on the economic growth of host country is the employment extension (Hermes and Lensink, 2003). While some studies claims that technological diffusion is the factor which helps in economic growth (Borensztein, Gregorio, & Lee, 1998). According to (UNCTAD, 1999), FDI helps to increment competition in the local market which makes domestic market more efficient.T he study focuses on the impact of foreign direct investment on the economic growth of