Critically discuss using empirical evidence, the various reasons for Essay

Critically discuss using empirical evidence, the various reasons for Foreign Direct Investment - Essay Example The effect of FDI on host economies has been the subject of extensive research. As pointed out by Hanson (2001), both theory and empirical evidence provide mixed results on the net welfare effect of inward FDI on recipient countries. The attitude towards inward Foreign Direct Investment (FDI) has changed considerably over the last couple of decades, as most countries have liberalized their policies to attract investments from foreign multinational corporations (MNCs). In fact FDI has proved to be resilient during financial crises. For instance, in East Asian countries, such investment was remarkably stable during the global financial crisis of 1997-98. This crisis mainly involved four basic problems (CRS Report, 1998): Economists argue that the primary cause of the crisis was too much government intervention in economic activity, leading to misdirected and inefficient investments in both public and private projects. As an aftereffect of the crisis short-term capital inflows were viewed as unstable and thus dangerous; long-term capital movements were seen as stable and thus desirable. Therefore an emphasis was put on de-emphasizing short-term capital inflows and encouraging long-term capital inflows, especially FDI which was seen as directly enhancing domestic productive capabilities. There’s one school of thought which puts the blame for this crisis on FDI itself. They argue that the crisis had shown that over-reliance on FDI carried its own dangers. Rapid FDI inflows had been a major factor enabling these countries to maintain their overvalued exchange rates. No doubt such exchange rates helped keep domestic inflation under control, but they also increased East Asian vulnerability to specu lative attacks. And therefore it was the drying up of FDI, largely as a result of competition from lower wage countries (especially China) and the mobility of regional investment by

Block's analysis Essay Example | Topics and Well Written Essays - 750 words

Block's analysis - Essay Example Instead, as the service sector has come to contribute a large part of the global income, it has become important for organizations to choose the right structure and approach that can create the perfect working atmosphere for its employees. Most organizations that exist in the world today are yet to recognize the importance of organizational behavior and remain attached to a culture that centers over control and authority. Even with the increased emphasis on improving relationships, developing inter personal skills and communicative strengths, institutions still tend to rely on focusing their resources towards devising better and efficient strategies, control structures and technology that continue to be perceived as the visible parameters for organizational success. However, businesses fail to understand that the present working demands an approach that is rational and need not be tangible and measurable. Issues concerning standards, practices, rewards, empowerment and training are issues that assume greater significance in the new age of consulting that needs further enhancements and newer approaches as it is still nascent in terms of evolutionary analyses. In the present case, it seems that employees (consultees) have been asked to fill out a survey that is perceived as potentially exacerbating material by the top management in the company. as the name suggests, The role of the coordinator for Staff Development in the current scenario is to improve the professional and personal capabilities and efficiency of the employees. However, problems can arise when the role of a consultant is limited to a mere effort that involves analyzing the current situation and suggest a few recommendations that are believed to provide better results. Instead, employees expect to see action whenever any such attempts are made. When surveys aimed at finding out possible inefficiencies are too specific by virtue of concentrating on minute areas of detail, workers need to use extra effort and thought to fill them out. In many such instances, they are probably the best bet when it comes to highlighting very specific issues that exist within their work domains. Having made such an effort, respondents expect someone to pursue it responsibly and take the necessary action. When they begin to sense that nothing has been done to look into their issues, a general sense of distrust and distaste begins to develop. A staff coordinator is also responsible for ensuring transparency at all levels within the organization and ensuring that the management participates in the requisite roles with complete dedication. It is also expected that deliberate displays of power, authority and expertise are done away with in such scenarios. However, as is evident in most organizations today, differences crop up at all levels within a company. For instance, departments sometimes find it difficult to coordinate a task that requires collaboration between several such entities usually involving a distortion of communication and lack of understanding of the role of people in the other departments thereby leading to mutual criticism and lack of respect. In such cases, animosity develops between departments, which may surface