Saturday, July 20, 2019
International business it is combination business across national boundaries which has different region of export, licensing, franchise and foreign direct investment (FDI). FDI is an investment to acquire international business ventures and itÃ¢â¬â¢s also requiring a lot of commitment in term of sources that could bring socio economic growth to that country. Furthermore, FDI flows facilitate the acquirement of intangible assets and valuable tangible, in which FDI brings a positive value toward assets transfer, improve productivity and merchandise quality. This entry could bring positive factor to economic growth when the basic factors are been fulfilled such as competent human resource exists. In the recent studies shows that FDI inflow and economic growth has a positive correlation in shorter view. In to that extent, the acknowledgement of the FDI could influence several of channel such capital and overcome liquidity and have even largest channel in long term view however it canÃ¢â¬â¢t be undetermined if itÃ¢â¬â¢s will have positive correlation for long term situation. The intervention of Multi-National Corporation (MNCs) will be great sources for foreign direct investment which could predict the increases of the FDI flows in future. The Combination MNCs and FDI channels in the market could lead in accumulated sources and just MNCs itself enough could give high impact on operational structural to the country. The positive impacts cause for the both combination it is capital accumulation, balance of payment, international network, human capital, financial system boost and supply technology, knowledge and capital. On part capital accumulation, when the host country has the low saving rate but it will sufficient for them as long that it investment... ...atistical Institute on electronic data distribution system of the central bank of the republic of turkey. The resulted from the studies shows the Granger causality analysis state there is no causal relation between an increase in FDI and increase in the GDP in the short run. Accord to the OLS result there is possible result FDI inflow have positive impact to GDP growth. But the positive effect was shown arenÃ¢â¬â¢t has no significance to its. Further on, FDI in Turkey does not lead any growth in the GDP volume. FDI enter as privatization processes not as a substantial source of economic growth. Beside that there is also no correlation between FDI and GDP neither in short run or in long run. Moreover, this aim cannot achievable as with the old dated application and also Turkey hasnÃ¢â¬â¢t able to gains any positive inflows from the FDI to its economical potential and growth.