Benefits realized by a DFI in Thailand
Direct foreign investment is purchase of ownership in a foreign venture by the investing country that own and exercise administration control of the foreign enterprise, or it is the stock of investments in existence (Chow, & Solt, 1997). Thailand benefits by Direct Foreign investments various ways, since it is a subsidiary, it receives managerial skills, trade secrets, rand names, technology, and marketing capabilities. Holding stocks for an extended time to sell in the future has a negative return to the investing company as it can face risks and also go bankrupt. Investing now always rewards, and ensures positive returns to the investing Company. The investing companies should consider the ups and downs of the market over the long term investment.
Thailand’s Reaction towards Blades Company
In my view, Thailand will have a positive reaction towards Blades as a direct foreign Investment, since its problem of unemployment will be solved. Economic growth is the most means of raising people’s incomes and reducing poverty in developing countries; Blades will create job opportunities to the unemployed, who in return support their families. Blades Company will participate in uplifting the lives of the citizens of Thai. Consequently the companies will benefit from international marketing, since production of its production and services is guaranteed. Thai government should give a favorable discount to Blades Company as its project is viable. The government will also obtain revenue.
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