Foreign Investment As A Global Village From The Rapid Introduction Of Technology

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Introduction The world is becoming a global village from the rapid introduction of technology; there should be a need to understand the relationship between foreign investors and the economy. Foreign investors and its impact on the economic growth of a country cannot be over emphasized. A way by which it affects the economy is through the foreign direct investment. Foreign direct investment is defined not only as the transfer of money, but also a mixture of financial and intangible assets such as technology, managerial capability, marketing skills, and other assets (Nahide & Badri, 2014). In various economies they have regulations guiding the actions of foreign investors, but their impact are still felt on the economy, especially the developing countries. It assists in creating employment opportunities as well as improving the Gross Domestic Product (GDP) of the economy. Recently, there has been an increased attention to foreign direct investment; this proves the fact that it’s seen as the main factor of economic growth (Camelia, 2013). Despite the barrier to foreign investment, it has a positive impact on the economic growth of a country. Determinant of foreign investors: An investor cannot just invest blindly in another country’s economy. There are different factors that influence the decision of foreign investors. Firstly, for a firm to invest in another country, there must be availability of the needed resources. These resources range from goods,
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