GAURAV RAMTEKE
GAURAV RAMTEKE answered question
What Are The Demerits Of Fdi ?
  • Inflation may increase slightly
  • Domestic firms may suffer if they are relatively uncompetitive
  • If there is a lot of FDI into one industry e.g. The automotive industry then a country can become too dependent on it and it may turn into a risk that is why countries like the Czech Republic are “seeking to attract … Read more
GAURAV RAMTEKE
GAURAV RAMTEKE answered question
What Is Foreign Direct Investment? Explain With Example.........
Causes a flow of money into the economy which stimulates economic activity. Employment will increase. Long run aggregate supply will shift outwards. Aggregate demand will also shift outwards as investment is a component of aggregate demand. It may give domestic producers an incentive to become more efficient . The government of the country experiencing increasing … Read more