Impact of Foreign Investment in Zambia

Many different contexts group together to make up the term “globalization” such as: technology, trade, offshoring, outsourcing integration, migration, transportation, and environmental pollution. In plain terms, globalization can be described as a process that embraces economic and cultural transmissions between countries. This process is intended to improve the function of economic activities worldwide. The movement also supports the idea of internationalism. Influencing a nation to adopt new political views and educational values can be a potentially positive way to help a struggling nation develop. However, economic improvement in this situation is not always the case. Research provides an irregular pattern concerning economic development. Focusing in on the impact of globalization in South Africa, both positives and negatives have played a part in this country’s struggle to compete with the rest of the world.

Yet for these countries, world trade in reality plays a major role. In many Sub-Saharan countries, foreign trade (measured in terms of imports and exports) represents more than fifty percent of their GDPs. This is due to a lack of infrastructure and machinery to process the available raw materials which leaves countries overdependent on imports, not adequately balanced by corresponding exports. This dependence on finished imports would be curtailed if these nations had enough capital to purchase machinery to process their raw-materials and sell the finished product locally or export them. However, in order to obtain enough capital to fulfill such drastic projects, they need outside help in the form of private investors.

Ghana is gaining money from trading with China. They have gained $1.4 billion and 86.7 of their resources are going to China. Ghana has a lot of poverty, but also many places that are rich. Based on the ABC-Clio Solutions, China is 22.3% of the import partners. Imperialism in Ghana is different because some of the Chinese workers in Ghana are given negative attitudes and Cui Shoujun spent 3 months there investigating the workers. There are negative attitudes towards Chinese investment. In fact, views here are sharply divided. Ghanaian academics and government mostly welcome Chinese investment, believing it drives economic growth on the continent. But opponents point to negative factors such as political motivations, poor working conditions and a lack of respect for human rights, and this view is often expressed in the media. China is represented as not playing by the rules of the game and damaging Ghana’s economic

In today’s world of global trading, multinational corporations that are looking to expand on profits turn out to operate against the welfares of the world’s poorest countries. In the documentary, “Stealing Africa,” the film director, Christoffer Guldbrandsen, brings forward the concerning economic attention of the country of Zambia, located in South Africa. Zambia is known as the third largest copper reserves across the world, owned by multinational corporations globally. Due to such a heavy abundance of natural resources in Africa, the majority of the economy of Zambia revolves around the mining industry, which is like the backbone of the country. As the natural resources in Zambia remain rich, multinational companies, specifically Glencore, grew in investments resulting in the guilt of tax avoidance and undervaluing copper, which resulted in a downfall for the revenue of copper in the nation of Zambia. Guldbrandsen talks about the country of Zambia’s abundance of natural resources, yet their struggle to remain above the poverty line, as it is ranked in the top 20 poorest countries. Guldbrandsen insists that due to privatization starting from the year of 2001, the mining industry in Zambia has taken a downfall. Although the country of Zambia is very rich in resources, maintains the top copper mine in the world, a person a day lives below a dollar and almost eighty percent of the population remains unemployed.

The aim of this essay is to look at the evolution of both inward and outward foreign direct investments in Britain and then discuss the impact of the direction and level of FDI in Britain on the success or failure of British Business. This will lead us to question ourselves on whether the level and direction of FDI determine the success/failure of British firms. In other words, is there a correlation between these two key features of FDI and the performance of British firms and if this correlation implies causation.

This essay will focus on Chinese investment in Africa for sustainable energy resources as well as other resources and analysing the controversy of Chinese investment being a resource curse or a resource cure. Giving an example of an African nation which has seen a massive increase in investment from China is the Democratic Republic of the Congo. The current President of the Country Joseph Kabila has structured a partnership between the two countries which will focus on mining and infrastructure development.

Recently, on May 31th, 2013, was held a forum theme “Risks and Prospects for investment in Africa” in Beijing by Sun Zhenyu, president of the China society for World Trade Organization (WTO) studies. According to this forum, it was stipulated that China faces a large number of challenges and risks due to the fact that Chinese enterprises have little experience in assessing local policies, legislations, religion as well as

In the currently highly-integrated world some businesses are successful and big enough to become multinational companies, thus, operate in different countries. Regardless of the country in which the company operates, its government needs money for increasing the well-being of the citizens and developing the country’s economy. One of a government’s

You are researching direct foreign investment possibilities in African countries in the energy sector, either 100 percent owned or with a local partner. Which organization discussed in this chapter would you look to for help in developing a list of criteria for your decision?

Presently, there are over 35,000 multinational corporations (MNC) worldwide, controlling over 15,000 foreign subsidiaries and accounting approximately one-third of the global production. The developing countries that received the most multinational investment are those perceived to have the utmost development growth. They are commonly identified as newly industrialized countries and consist of Asian countries like China, Singapore, Malaysia, Thailand and Latin American countries like Mexico, Brazil and Argentina. The ten largest recipient of foreign direct investment receive nearly 95% of the totality, while the entire African countries set jointly obtain less than 4%. The poorest 50 countries of the world among them obtain less than 2% (Boyzk 2009).

One of the primary benefits of foreign direct investment is that it helps the developing country. When a large corporation pours millions or billions of dollars into building part of its business in that country, it can significantly stimulate the local economy. This helps other businesses in the surrounding

The negative impact of transnational corporations in the developing countries’ economy is undeniable. According to Blank & LaPalombara (1980), the biggest obstacle of the developing countries’ economy is the transnational corporations. The process of globalization granted these multinational companies free access to the international local markets all over the world. Their business practices outsource labour markets of these underdeveloped countries. As more and more of these poor nations’ citizens turn to these companies for employment,

In this paper, foreign aid refers to official development assistance (ODA), which is where the aid has concessional terms and the grant component is at least twenty-five percent (Wolf et al. 2013). While foreign direct investment is defined by the World Bank as “the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor (World Bank).” There is also a focus on the United States as the donor state.

Claims that the Foreign Direct Investment in Agriculture in Kenya have brought about many benefits as opposed to the vices are wrong. In his book, Multinational Corporations in Political Economy of Kenya, Langdon investigates multinational Corporations performances in Kenya in the mid 1970’s and concluded that their impact was overwhelmingly negative to the economy of Kenya. He argued that the MNC’s in Kenya after independence to date became ‘powerful instruments’ for profit making, a great deal of which profit was repatriated. They produced fewer spread effects in form of employment or linkage than local entrepreneurs would spur.

o An increase in the country’s economy with a shift from secondary to tertiary industry which becomes less dependent on FDI.