Foreign Direct Investment And Its Impact On An Economy

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Foreign Direct Investment in Ireland Introduction Foreign Direct Investment (FDI) has been considered important for the growth of a country. When the individuals or companies from a country invest in another country, it is regarded as FDI. FDI not only strengthens the manufacturing base of the host country but also contributes to the strengthening of the economic outlook. FDI can be seen as an investment that leads directly to job creation in an economy. The unemployment rate decreases due to FDI, which leads to stability in economic, social and political spheres. This leads to establishing the notion that FDI is necessary for a country because it helps in strengthening the economy of a particular country. Ireland has been benefitted by…show more content…
The investment plans would be aimed at Asian economies because of the positive growth seen in the Asian markets. As per an estimate, four-fifth of all the investment has been flowing towards less-developed countries in Asia. In 1996, China attracted 38% of the total investment flows from all over the world (Moran, 15). But it cannot be said that only the Asian economies have the potential to attract FDI because of their cheap labor. The capacity to attract investors relies heavily on a country’s prospects. Many of the developed countries have attracted more FDI by improving their prospects. Ireland has been ahead of its European counterparts in this matter. The country has been attracting a considerable amount of FDI every year from its allies. The economic cooperation between Ireland and the Unites States (U.S) has strengthened over the time. Ireland and FDI from the U.S According to a report, Ireland has been kept on the priority list by the U.S firms because of the country’s favorable prospects. The U.S firms have shown an increasing interest in Ireland because of its business-friendly policies. It has been estimated that more than $277 billion have been invested by the U.S companies in Ireland since the early 1990s (Taylor). Such a huge figure helps in establishing that the U.S firms have been among the major employers in the country. There are more than 700 U.S firms operating in the region and they
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