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If used correctly, foreign aid can be very beneficial. It is important for aid to go toward sustainable development. It is also important for aid to be transparent. If countries know where other countries are spending their aid, the money will be divided equally among places and programs. Check out the Make Aid Transparent website (link below) for more information. If aid is going to the right projects it has the power to do a lot. A good example of this is the Millennium Villages Project, (link below). This Project has been very successful with development in villages in Africa.
Learn more about poverty reduction at the Borgen Project website (link below).
FDI or MNC can fill up the Nation Saving Gap fill the Foreign exchange gap fill the tax revenue fill the management, entrepreneurship, technology and skill gap
An Overview of Advantages of FDI- Foreign Direct Investment in India is allowed through four basic routes namely, financial collaborations, technical collaborations and joint ventures, capital markets via Euro issues, and private placements or preferential allotments.
FDI inflow helps the developing countries to develop a transparent, broad, and effective policy environment for investment issues as well as, builds human and institutional capacities to execute the same. Benefits of Foreign Direct Investment- Attracting foreign direct investment has become an integral part of the economic development strategies for India. FDI ensures a huge amount of domestic capital, production level, and employment opportunities in the developing countries, which is a major step towards the economic growth of the country. FDI has been a booming factor that has bolstered the economic life of India, but on the other hand it is also being blamed for ousting domestic inflows. FDI is also claimed to have lowered few regulatory standards in terms of investment patterns. The effects of FDI are by and large transformative. The incorporation of a range of well-composed and relevant policies will boost up the profit ratio from Foreign Direct Investment higher. Some of the biggest advantages of FDI enjoyed by India have been listed as under:
Economic growth- This is one of the major sectors, which is enormously benefited from foreign direct investment. A remarkable inflow of FDI in various industrial units in India has boosted the economic life of country.
Trade- Foreign Direct Investments have opened a wide spectrum of opportunities in the trading of goods and services in India both in terms of import and export production. Products of superior quality are manufactured by various industries in India due to greater amount of FDI inflows in the country.
Employment and skill levels- FDI has also ensured a number of employment opportunities by aiding the setting up of industrial units in various corners of India.
Technology diffusion and knowledge transfer- FDI apparently helps in the outsourcing of knowledge from India especially in the Information Technology sector. It helps in developing the know-how process in India in terms of enhancing the technological advancement in India.
Linkages and spillover to domestic firms- Various foreign firms are now occupying a position in the Indian market through Joint Ventures and collaboration concerns. The maximum amount of the profits gained by the foreign firms through these joint ventures is spent on the Indian market.
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Disadvantages of foreign aid?
The United States gives foreign aid to other countries on a regular basis. The disadvantage of foreign aid include; increased national debt and the inability to care for the poor and needy citizens of our country.
What is one purpose of foreign aid?
To alleviate poverty or suffering
Why did the south want foreign aid?
Break the blockade and the South might be able to negotiate a settlement.
Examples of public opinion research?
Example of Public Opinion:In 1995, the University of Maryland Research Organization released an opinion survey that found that 75% of the respondents thought the national government spent too much money on foreign-aid programs, and upon asking how much of the national budget went for foreign-aid, the median response was 15%.
What if England had entered the war on the side of the confederacy?
It would have swung it for the South. If the Confederates managed to hold out for four years without foreign aid, imagine the difference that British infantry and warships would have made.
what are the advantages and disadvantage of foreign aid?
The advantages of aid are:-Helps a country recover from crisis- Allows growth of a country if it is used with sound economic policies.-Disaster relief - e.g. Tsunami-eradication of diseases, e.g. smallpoxThe Disadvantages of aid are:-Some governments are corrupt and money may not go where it needs to go-Countries can become reliant on aid - increased dependency- Aid can help support authoritarian regimes.- Aid can be wasted on glorifying the aid organisation-Aid can discourage development and hinder foreign investment. This is because the recipient country's currency will rise in value and then their exports become more expensive to foreign countries. Foreign aid may undermine foreign investment.-aid can hinder the emergence of an entrepreneurial classThe advantages of aid are:-Helps a country recover from crisis- Allows growth of a country if it is used with sound economic policies.-Disaster relief - e.g. Tsunami-eradication of diseases, e.g. smallpoxThe Disadvantages of aid are:-Some governments are corrupt and money may not go where it needs to go-Countries can become reliant on aid - increased dependency- Aid can help support authoritarian regimes.- Aid can be wasted on glorifying the aid organisation-Aid can discourage development and hinder foreign investment. This is because the recipient country's currency will rise in value and then their exports become more expensive to foreign countries. Foreign aid may undermine foreign investment.-aid can hinder the emergence of an entrepreneurial class
What some advantages that helped the Americans win?
better leadership, foreign aid, knowledge of the land where war took place, and motivation.
Foreign aid is intended to result in what?
Foreign aid is intended to result in development.
What are the Disadvantages of foreign aid to developing countries?
A disadvantage of foreign aid to a developing country might be the amount of money used for foreign aid when domestic aid is needed. It can be known up front if the aid will benefit the developing country.
What is the advantages and disadvantages of foreign trade multiplier?
advantages of foreign trade multiplier
What are the advantages of AID?
There are no advantages of HIV AIDS.
What aid does Malaysia receive from Australia?
Foreign aid
What is foreign aid?
Foreign aid is help such as economic or military assistance provided by one country to another.
How much foreign aid does russia give United States?
Russia does not give foreign aid to the usa. In fact Russia killed most or all of it's foreign aid back in the 90's with the collapse of the Soviet Union and has just recently started a foreign aid program again.
What does AI4D?
Foreign Aid
You visit a friend to help him complete a big project what foreign policy term most closely describes this example?
foreign aid
What are the Advantages and disadvantages of a foreign bank in India to an Indian investor?
advantages & disadvantages of foreign banks in India
