Chapter 10: Investment and Trade

Title: Cost-benefit analysis of foreign direct investment with particular focus on Jordan

Reference: WORLD SUSTAINABLE DEVELOPMENT OUTLOOK 2006 pp. 316 - 329

Abstract/Summary: This paper aimed at providing a cost-benefit analysis of Foreign Direct Investment (FDI) with particular focus on Jordan. The importance of this comes from the latest structural transformation and stabilisation of the Jordanian economy. The benefits to Jordan include new production, new managerial skills, new marketing opportunities, increasing exports, increasing employment, lowering prices and introducing new andor better quality goods. But, disadvantaged form highly protective incentives, lowering prices negatively affect local producers and diminish the tax revenues, large size projects influence the competitive environment, the new brands names products or services may distort economically and socially the consumption patterns. Finally, FDI in media and entertainments also poses the risk of facilitating hegemony by the dominant western cultures, rather than providing a window on a multicultural world.

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