The Impact of Inward Foreign Direct Investment on Host Countries Essay

The Impact of Inward Foreign Direct Investment on Host Countries - Essay Example According to the research findings, Foreign Direct Investment has over the last three decades aroused conflicting responses from the first and third world. 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. 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 cy cles as a result of engaging in FDI. Growth is normally measured by looking at the trends in per 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. The extraneous variable has 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. 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. Thu s it is difficult to generalize these effects and apply them to other countries as the findings of a study. However, the probable effects are not completely elusive, as the endogenous growth theory provides a framework for the positive linkage between growth and FDI inflows.

Smoking Cigarettes is Good for Your Health Essay - 1

Smoking Cigarettes is Good for Your Health - Essay Example For example, many manufacturing firms use celebs, sportsmen and peer groups to create awareness that, the character prospered and accomplished a given task on smoking the brand. The advert attracts different old and new buyers alike, leading to increased profitability (Owing, 2005). Therefore, the good thing about smoking is the aspect of belongingness to a distinctive consumer group, enhancing the producer’s profitability levels accordingly. The following describes the effects of smoking, and the risks associated with the habit for new and existing users to the cigarette smokers. Smoking poses as a risky practice has a wide range of hazardous health effects to humans. Different smoking products in the market contain nicotine, tar and other chemical composites that affect ones health over the period of indulgence into the smoking behavior. Smoking of cigarettes, cannabis sativa, and other narcotic has taken verge over youths worldwide, who perceive the behavior as stylish and entry to a de sired group of personalities in the society. All smoking products emit smoke that contains tar, and nicotine, which increases the risks of conducting cancerous diseases, associated top the breathing system (Bernhard, 2011). Carbon monoxide, once inhaled, deoxygenizes the blood such that the smoker feels dizzy, whilst the deoxygenated cells die off slowly. The dead cells result to wrinkling of tissues of the affected. Secondly, smoking impairs justice and the likeliness that smokers will assume difficult situations as oblivious are relatively high. Precisely, all the content s in every smoke tend to stimulate a false feeling whilst generating a long-term health issue to the smoker (Brandt, 2009). The behavior of smoking is recurring, thus, whenever a person seeks to derive the effect of smoking, he will go ahead and light. Therefore, the habit, which once cropped as a less serious practice, takes over and charges the man to addiction. This is the most wary stage