All of these people could physically fit in a land the size of Texas at about 40 people per acre. Imagine the overcrowding and civil unrest that could occur, if this were the case. Similarly, consider how much farmland would be needed to feed the population for quite some time. Population growth has both advantages and disadvantages.
This is especially applicable for developing economies.
During the s, foreign direct investment was one of the major external sources of financing for most countries that were growing economically. It has also been noted that foreign direct investment has helped several countries when they faced economic hardship.
An example of this can be seen in some countries in the East Asian region. It was observed during the Asian financial crisis that the amount of foreign direct investment made in these countries was held steady while other forms of cash inflows suffered major setbacks.
Similar observations have also been made in Latin America in the s and in Mexico in For host countries, inward FDI has the potential for job creation and employment, which is often followed by higher wages. Resource transfer, in terms of capital and technical knowledge, is also a key motivator that encourages inward FDI.
In recent years, FDI has been used more as a market entry strategy for investors, rather than an investment strategy. Despite the decline in trade barriers, FDI growth has increased at a higher rate than the level of world trade as businesses attempt to circumvent protectionist measures through direct investments.
With globalization, the horizons and limits have been extended and companies now see the world economy as their market.
Additionally for investors, FDI provides the benefits of reduced cost through the realization of scale economies, and coordination advantages, especially for integrated supply chains.
The preference for a direct investment approach rather than licensing and franchising can also been viewed in terms of strategic control, where management rights allows for technological know-how and intellectual property to be kept in-house.veterans application for assistance in acquiring home improvement and structural alterations, continued section ii - (for va use only) hisa committee action.
International trade helps in many other ways such as benefits to consumers, international peace and better standard of living.
Disadvantages of International Trade: Though foreign trade has many advantages, its dangers or disadvantages should not be ignored. One of the advantages of foreign direct investment is that it helps in the economic development of the particular country where the investment is being made.
Tax Cuts and Economic Growth. Exaggerated claims for the economic growth benefits of large tax cuts have been around since the emergence of supply-side economics in the late s and persist to this day.
The advantages and disadvantages of colonialism is a very good aspect of history because it made someone to know what happened in the . Economic depression in one country can trigger adverse reaction across the globe.
It can increase spread of communicable diseases. Companies face much greater competition. This can put smaller companies, at a disadvantage as they do not have resources to compete at global scale.