Global And Domestic Factors Negatively Affecting Malaysia 's Fdi

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The Global and Domestic Factors Negatively Affecting Malaysia’s FDI In this essay, there will be a detailed analysis regarding the negative growth of FDIs in Malaysia, this is in respect to both Global and Domestic factors which affect FDIs overall. Why do countries undertake Foreign direct investments? What encourages one country to commence foreign investments? These questions will be answered in this essay in respect to Malaysia and why there is a reduction of FDIs overall. Globalisation, when there is an overall shift towards a more interdependent and unified world economy, which then affects the Globalisation of markets, essentially being the combination and interdependence of markets between one another to eventually create one global marketplace. (Hill,, 2014) The Globalisation of Production is the utilization of goods and services provided from locations around the world to take advantage of differences which exist between countries in terms of cost and the overall quality of factors of production, ( Land, Labour, Capital, Entrepreneurship). (Hill,, 2014) For a market to eventually become Global it must first be able to operate in a number of countries. FDIs, or “Foreign Direct Investments are when a firm invest a certain amount of resources in business activities outside its home country, giving it some control over those activities” (Hill,, p19, 2014) Firms nowadays, due to Globalisation of the world economy, are undertaking a positive

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