Help with eco qs! URGENT (1 Viewer)

[Smeegen999]

could anyone help me with these qs

1. discuss the role of foreign investment in generating growth in developing economies.

2. outline 3 reasons why growth rates can differ between economies

please help! i'm desperate!!!!!!!

 

[763259826t35647]

could anyone help me with these qs

1. discuss the role of foreign investment in generating growth in developing economies.

2. outline 3 reasons why growth rates can differ between economies

please help! i'm desperate!!!!!!!

This won't be so detailed as its off the top of my head, but i hope its helpful:

1. Foreign investment is essential for growth to occur in developing economies, as there are associated technology flows. The spillover effects of foreign direct investment (FDI) from transnational corporations in developing economies, include: reverse engineering (domestic producers learn of new products and technology introduced by transnational corporations and improve these designs with innovation), a demonstration effect (where presence of a TNC's products and processes may stimulate domestic innovation as firms are confident in making changes, as these are evident to be successful in the TNC), movement of skilled labour between competitors (When local staff have been trained by a TNC, these staff may then work for a domestic firm and take their skills with them) and finally; supplier customer relationships (where TNC may pass on to its domestic suppliers improved technology to ensure their component supplies are the desired quality).

This taken from maquarie economics hsc book

don't know bout 2. but good luck!

could anyone help me with these qs

1. discuss the role of foreign investment in generating growth in developing economies.

2. outline 3 reasons why growth rates can differ between economies

please help! i'm desperate!!!!!!!

Oh sorry didnt quite finish

1 (continued). These improved technology flows improve the productivity and efficiency of domestic operating firms, enabling goods and service to be produced at lower prices. This stimulates aggregate demand, as consumers buy more domestically produced products, and fewer imports are required (improving net exports which is a component of aggregate demand).

thats about all i know, hope it helps

 

[Smeegen999]

thanks heaps, none of that information was in my textbook, so i had no idea.

i told my teacher this, and she says "well the information should be in your head" like i'm just supposed to just know these things... :burn:

 

[Demandred]

As for different growth rates, off the top of my head:

- Different levels of human capital or investment into education, its almost universally held that investment into education (university/TAFE/high school funding) would result in higher levels of economic growth and development, especially for women and third world nations.

- Different phases of development, according to some economists like Dworick, an economy under goes several phases of growth as it develops from primitive agricultural based industries to manufacturing to high-skilled service orientated sectors.

- Different economic systems, economies under market based structures tends to have higher degree of economic growth and development when compared to centralised or non-market based system.

There's a million other factors, basically anything which affects the C + G + I + (XM) equation.