Sample Thesis Paper
Every nation possesses a unique and distinct culture. One of the key features of a national culture is its environment which can be described as the subjective feelings about the nation among those who work within it. Alfaro(2004) argued that Foreign Direct Investment plays a major role in shaping the local financial markets. The nature of effect determines the relationship between the FDI and Although Foreign Direct Investment is not a new topic, in recent years it has become a hot topic in many organisations. The research will present the importance of Foreign Direct Investment in the growth of a developing nation and how it shapes the financial markets. In the year 1981, FDI accounted for more than half of all the private capital inflows to developing countries. It has been as a result of the ability of these developing nations to attract more FDI.
Growth and Development are two different concepts and each of them posses’ different characters. However both of them are important for sustaining an economy. Growth’s focus is mainly on accomplishing economic targets by setting objectives and controlling the subordinates. In contrast, Development shapes the entire standard of living of the country and develops the state of welfare. The research will include analysis of the Foreign Direct Investment with respect to both.
Technology diffusion can also occur from labour turnover as the domestic employees leave the domestic firms for international firms. These benefits with the additional capital financing can result in FDI playing an important role in the modernization of the local economy of Angola and promoting growth.
After 2002, the combination between the richness in petrol and the investment in infrastructure has transformed Angola in one of the main destinations for FDI in the African continent. According to the National Agency of FDI (ANIP), the projects involving Foreign Direct Investment in Angola have increased in the first semester of 2004 to a total amount of US$825 million. The positive relationship between FDI and growth will therefore have to be analyzed in order to determine the effects that it has and the effects that the negative factors might have on this relationship.
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