International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Foreign Direct Investment: A Business Proposition to Exploit Opportunities to Maximize Profit
Dr. Nisar Ahmad

The study is designed to explore the possible impact of direct foreign investment on economic growth of developing countries. It is presumed that foreign investors are likely to exploit opportunities in developing countries to make abnormal profits and they are unconcerned with the economic growth process of the host country and welfare of its people. Looking at the successful experience of developing countries such as China and Singapore, the low performing developing countries are keen to attract foreign investors on terms difficult to justify as an economic proposition. The study found sufficient evidence to prove that foreign investors when investing abroad are solely guided by their profit making motives. In fact, the foreign investors fully exploit the possible privileges to take advantage for maximizing their profit. The author has made an attempt to bring in possible options for the developing countries to reduce their dependence on FDI as priority source for boosting economic growth in the country. Relying more on the foreign earning of their own nationals in the form of foreign remittances, developing countries can protect themselves from exploitation of foreign investors.

Full Text: PDF