What are the positive and negative effects of foreign direct investment on the economy of a country?
Foreign Direct Investment has both positive and negative effect on an economy/country these arePositive EffectCompetitive economy - FDI makes the economy of a country more competitive. Multinationals Corporations while setting up offices or manufacturing units brings with them cutting edge technology that helps to boost the business and provides employment to the people of the country.Elomination of Monopoly - Through FDI, government can eliminate monopoly of the local companies so that consumer can get quality products at a cheaper rate. Also it helps in increase of the revenue of exchequer in the form of taxes and duties.Human Resources Development - Foreign corporations trains the local human resources so that they can be made productive and employable.Revenue to the host country - By FDI, Multinational Corporations brings in new technology to the host country and sets offices and manufacturing units which in turn helps the government to increase their revenue in the form of taxes. Also corporations export the product they made in the host country to the other country and increase the foreign reserve to the host country.Negative EffectExploitation of local resources - Many a times corporation pursue the local government to amend the labour laws as per their needs and due to which they exploit the labour by forcing them to work for long hours and doesn't get fair remunerations. Also they exploit the natural resources such as minerals by extracting them in larger quantities and sending them back to their home country at a cheaper rate, thus causing harm to the environment also.Loss of business of local enterprises - multinational corporations too much money as compared to local ones and have big belly with them, thus the local ones cannot compete with them in terms of technology and most important capital thus many wipe out from the race or becomes niche player.
What were the negative effects of the colonialism in Africa? What caused them?
Negative impacts of colonialism in Africa tends to circulate on one major factor ‘culture’ be it economic, agricultural, social or religious. here are a few factsThose leaders who could have made Africa strong because of their influence, were killed by colonisers or arrested this left societies divided and unorganised.Colonists used the ‘divide and rule theory’ this theory brought about divisions in the African traditional society and setup. Divided as we were, acted to the advantage of our oppressors and opportunists who penetrated in the veins of our trade and agriculture and stole pieces of land.Increased slaveryAfricans were forced to drop their dressing codes, cut their hair and traumatised in their own land.Our religious ideologies were rendered useless and backward thus forced to drop them.In African Traditional setup, we did not have words like rape or theft but we had cattle rustling European culture destroyed or that and brought in new challengesAfricans were forced to drop cultivating their own traditional food stuffsEuropeans came with diseases like measles, chickenpox, smallpox, polio that were unheard of before.Europeans came with mass murder weapons like bombs and guns and used them upon AfricansMost Africans were forced to fight in the first and second world wars by colonialist (their wars not our wars) and none, absolutely none of those ware rewarded or their families except for badges that they participated in the helping wherever.Africans were subjected to the colonial experience including forced labour, land alienation, taxation, poor wages, discrimination corporal punishment rape and murder.read more here:The Slave Trade in East AfricaESTABLISHMENT OF COLONIAL RULE IN KENYA.The Positive and Negative Impact of Colonization in AfricaI hope you will enjoy reading