Interest Rates and Foreign Direct Research Proposal

Open, View, and/or
Download this Document

Total Length: 686 words ( 2 double-spaced pages)

Total Sources: 3

Page 1 of 2

In the article, they surveyed 69 different countries, searching for answers on what affects FDI. Where, they found that interest rates will affect FDI flow: as the cost of financing, purchasing new equipment and the strength or weakness of the economy will play an important part. In the case of Australia, this is significant because the low interest rates that they have had in place since the 1980's, have helped contribute to this capital inflow. This is an interesting point, because the interest rates were lower in Australia than China. As a result, because of the lower interest rates, Australia attracted the largest amounts of FDI.

Clearly, interest rates play a major role in determining the overall flow of investment capital. This is because higher or lower rates will affect everything from the cost of purchasing equipment to consumer activity. As a result, the level of interest rates will have effect on FDI investments.

Stuck Writing Your "Interest Rates and Foreign Direct" Research Proposal?

View All Our Example Interest Rates and Foreign Direct Research Proposal

Have A Custom Example Essay Written

In the case of Australia, the low interest rates have meant that they are attracting large amounts of FDI in comparison with other countries in the region (such as China). However, it is important to remember that interest rates are just one piece that will affect FDI rates; some other factors would include: wages, the ability to quickly settle industrial / labor disputes and a business friendly atmosphere. Together, these factors will play a role in determining how much FDI is coming into a country. In the case of Australia, all of these different factors have contributed to the increased amounts of foreign direct investments that are being received. When you examine this relationship with interest rates and other factors, you can be able to fully understand what is influencing foreign investors......

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Interest Rates And Foreign Direct" (2010, March 16) Retrieved May 21, 2025, from
https://www.aceyourpaper.com/essays/interest-rates-foreign-direct-679

Latest MLA Format (8th edition)

Copy Reference
"Interest Rates And Foreign Direct" 16 March 2010. Web.21 May. 2025. <
https://www.aceyourpaper.com/essays/interest-rates-foreign-direct-679>

Latest Chicago Format (16th edition)

Copy Reference
"Interest Rates And Foreign Direct", 16 March 2010, Accessed.21 May. 2025,
https://www.aceyourpaper.com/essays/interest-rates-foreign-direct-679
   

Open, View, and/or
Download this Document
order custom essay example