Foreign Direct Investment Into Polish Renewable Resources

The Foreign Direct Investment (also known as “FDI”) is the policy of countries doing business in other countries. The FDI is always recorded on a yearly basis by the National Foreign Exchange. The normal way that FDI works is when a business in one country has control and ownership of a company in another country.

Here are few ways how the concept of Foreign Direct Investment works:

  • - By starting or incorporating a company in another country.
  • - By becoming the primary shareholder in a foreign enterprise.
  • - By two corporations in two different countries becoming a single company by way of acquisition or merger.
  • By way of joint partnership or joint venture between two companies in different countries.

Here are the different types of FDI that can occur:

  • - Horizontal Foreign Direct Investment;
  • - Platform Foreign Direct Investment; and
  • - Vertical Foreign Direct Investment.

Here are the different types of Foreign Direct Investment programs that can be set-up:

  • - Concessions in the form of taxes;
  • - Zones that are set-up specially for a specific purpose;
  • - Subsidies that are set-up for financial investment purposes;
  • - Loans that are soft and guaranteed;
  • - Subsidies to obtain land in other countries for development; and
  • - Different types of tariffs.

Many countries have come to realize the importance of doing business in other countries to grow their foreign economy and their home economy. Most of the FDI occurs in the following “Developed” Countries:

  • - United States;
  • - European Union;
  • - China; and
  • - Japan.

But, many “Developing” Countries are starting to play a major role in the world economy. Here are some of the major “Developing” countries making their mark in the world economy:

  • - India;
  • - Many countries in the African Union; and
  • - Many smaller countries in the Middle East.

The main areas where FDI is becoming very popular is in the following areas of business:

  • - Manufacturing;
  • - Renewable Energy;
  • - Retail;
  • - Customer Service; and
  • - Mining of Various Minerals.

Many countries have no issue with outsourcing certain services to different countries. Companies in the USA normally will outsource their customer service to countries like India and Indonesia. Many automobile manufacturers in Asian countries like to have their vehicles made in USA factories. Many countries like China and Russia buy their oil from countries like Iran and Saudi Arabia. The Foreign Direct Investment will not be a major issue for foreign corporations to do business with Poland concerning the manufacturing of renewable resources. FDI allows “Developing” Countries to become major players in the world economy. | Essay Writing Secrets