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Balance of payments Essay Topics & Paper Examples

Impact of Fdi on Home Country

1. Introduction: The term “Foreign Direct Investment” or “FDI” encompasses two related but different sets of topics or activities, explained by different theories and by different branches of economics. The first might be referred to as the international finance, or macro, view. The second might be referred to as the industrial organization, or micro, view. The macro view sees FDI as a particular form of the flow of capital across national borders, from home countries to host countries, measured in Balance of Payments Statistics. Those flows give rise to a particular form of stocks of capital in host countries, namely the value of home country investment in entities, typically corporations, controlled by a home country owner, or in which a…

Pakistan and Its Crisis

Literature Review Many economists consider the financial crisis of 2007/2008, also known as the Global Financial Crisis of 2008 the worst financial crisis since, the Great Depression of the 1930s. It resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. The direct impact of the global financial crisis on developing countries including Pakistan has been limited due to non-integration of the domestic financial sector with the global financial sector (IMF, March 2009). However, the crisis has set in motion global recession which has not spared the low income countries. How the recession affects an economy depends, among other things, on the state of…