Topic > In order to encourage foreign direct investment, government policy is seen…

Foreign direct investment is an abbreviated form of foreign direct investment which refers to an investment made to acquire durable or long-term interest in businesses that operate outside the investor's economy. The investment is direct because the investor, who could be a foreign person, company, or group of entities, is seeking to control, manage, or have significant influence over the foreign enterprise. As everyone knows, outsourcing is an arrangement in which one company provides services for another company that lacks or does not have a specialization in a certain area of ​​expertise. Outsourcing is a trend that is becoming increasingly common in information technology and other industries for services that have usually been considered intrinsic to running a business. Nowadays, outsourcing is a famous and important thing in the business world. Outsourcing also to describe in practice the management of control of public services for profit. With outsourcing, all the work that the company needs to do, the company will give the project to another company to do it. Outsourcing is a good strategy to complete the task that the company cannot do, outsourcing means avoiding cost losses. There is a reason why companies prefer to outsource the project, because they are too safe from regulation, high taxes, cost of energy, in other words they have to avoid taxes for the government. As costs are reduced, management sees the opportunity for short-term profits, while increasing consumer income is challenged. Besides the advantages of outsourcing, there are some disadvantages of outsourcing which are the risk of exposing confidential data. Although outsourcing in most cases is cost-effective or in other words cost-saving... half the paper ......t: http://www.oecd.org/mena/investment/35275189.pdf [accessed March 4, 2014].2. OECD publication. 2002. Foreign Direct Investment for Development. Available at: http://www.oecd.org/investment/investmentfordevelopment/1959815.pdf [Accessed 4 March 2014].3. Barry Kolodkin. 2014. United States Foreign Policy. Available at: http://usforeignpolicy.about.com/od/introtoforeignpolicy/a/what-is-FDI.htm [Accessed 5 March 2014].4. Dirk Willem te Velde. 2001. OECD Development Centre. Available at: http://www.oecd.org/dev/2698620.pdf [accessed 5 March 2014].5. Vienna. 2009. United Nations Industrial Development Organization. Available at: http://www.unido.org//fileadmin/user_media/Publications/Research_and_statistics/Branch_publications/Research_and_Policy/Files/Working_Papers/2009/WP%2001%20FDI%20Policy%20Instruments%20-%20Advantages%20and %20Disadvantages .pdf [Accessed 6 March 2014].