Growing importance of FDI Sample Clauses

Growing importance of FDI. The reality of the post-war economic developments has been the growing importance of FDI in many countries of the world and in international economic relations. This trend has accelerated in the last decade. The growth of FDI has its origin in powerful forces of capital movements which go hand in hand or may even replace trade flows. It is generally thought that these forces work very strongly both on the supply side (home country) and demand-side (host country). In home countries, these forces include the benefits from increased market access and improved competitiveness due to a better access to cheaper inputs or to strengthening of the company's capital base as result of strategic alliances with foreign partners. For the host countries, the benefits of FDI include an improved access to technology, marketing channels, organisational and managerial skills, and the contribution to domestic savings and investment. A number of studies such as WTO (1996) and the research carried out by the Centre d'Etudes Prospectives et d'Informations Internationales in Paris clearly show that there is a strong element of complementarity between trade and FDI, both in the home and host countries. In other words, trade tends to encourage FDI, and FDI tends to encourage trade. The contribution to domestic resource allocation and investment can also be very positive. Hence, an investment agreement will turn out to be beneficial for both the host country and the home country.
Sample 1
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