This website uses cookies to ensure you have the best experience. Learn more

Foreign Trade And Investments With Indonesia

902 words - 4 pages

Aulia Akbar Ramadhan


Indonesia always received a large amount of FDI. This FDI came from several developed countries such as Japan, United States of America and the European Union. FDI inflow has confirmed the activity of trade between countries through development of export (export expansion). In addition , FDI can also replace trade by become import substitution, especially if FDI that brought in aims to develop the domestic market or as to avoid trade impediments such as tariffs. FDI impact for a country is is always in a favorable state of the the country especially in terms of development and economic growth. Many empirical evidence in South Korea , Malaysia , Thailand , China , and many other countries shows that the presence of FDI gave a lot of positive things to economy of the host country . For the case of Indonesia , the most prooving evidence is during the reign of New Order goverment . Indonesian economy may not be able to bounce back from the devastation created by the Old Order goverment and could experience an average economic growth of 7 % per year during the period if not because FDI. Several Literature theory also gives a strong argument that there is a positive correlation between FDI and economic growth in the recipient country .
There are four fundamental problems that often lead for researcher to do studies about the relationship with FDI inflows of a country. First is the factors that determine FDI inflows in the country in a well developed country or in the developing country. Second, the relationship between FDI and country trade activity (exports and imports). Third, the contribution of FDI to economic growth. Last is what is the appropriate role by the government to attract FDI flows. to explain these four questions. Majority of the previous studies are using aggregate data which is the result of using regression analysis method. This study will answer for the question number two, which is about the relationship between FDI and International trade of Indonesia in 2000 until 2013.

The reason for a country to do the international trading with other countries is basically the same. The reason is to take advantage of the exchange goods and the services produced in the field of specialization of a country which has the comparative advantage in each of the country itself. This specialization will be improving the living standards of a country. While foreign direct investment is considered as the main element for the industrial development and economic growth of a hostcountry. According to Rosa Portela Forte , " Foreign direct investment (FDI) influences the host country’s economic growth through the...

Find Another Essay On Foreign Trade and Investments with Indonesia

Commodore Matthew Perry and Trade with Japan

1292 words - 6 pages were convinced that addition of foreign ways, especially in business, was “the new way of making Japan strong, so the high-nosed barbarian could no longer beat the children of Japan in trade.”18 Commodore Matthew Perry broke down the beginning barriers that separated Japan from the rest of the world. Today ironically, the Japanese celebrate his voyages with annual Black Ships festivals. Each May in Shimoda, where the feudal warriors once

The possible effects of the UK entry into the Euro on foreign trade and foreign direct investment in the country

1491 words - 6 pages allocative and productive efficiency; consumer sovereignty remains as consumers would have a wider ranger of goods in the market.So what effects will it have on foreign trade with the UK joining this single currency? Will trade be boosted? If the UK decides to join the Euro, it will be joining the largest single market in the world outside the US. As a result of this, business can be sold more widely, achieving economies of scale. It also allows

President Clinton's Foreign Relations With Cuba and Haiti

1812 words - 7 pages actions in terms of proper foreign policy regarding those countries situations at the time. Although the actions by the Clinton administration differ when directed towards the countries of Cuba and Haiti, they share similarities in their motivations and in the message that this administration was trying to deliver. When looking at Clinton’s dealings with Cuba and Haiti one must look at the motivations behind why the President was acting in the

Free Trade, Countries with the highest and the lowest trade tariffs

579 words - 2 pages was 17.288.000 in the same time weighted average tariff was 3,3%. The following charts illustrate relationship between welfare (as a GDP per capita) and weighted tariffs for 5 countries with the highest and 5 with the lowest tariffs:We can notice a relationship between GDP/Capita and trade tariffs. The higher GDP/Capita, the lower trade tariffs and vice versa. Most of the developing countries are imposing high tariffs rates to protect their own

Economic Structures in the third world: concerning production, infrastructure and foreign trade. Development in the Third World

1526 words - 6 pages Economic Structures in the third world:1)-A common way of defining a Third World country is by using economic criteria. Describe what the economic structures most commonly look like for a majority of Third World countries concerning production, infrastructure and foreign trade and what reasons may be for this situation."Third World" was first used as a political term to describe countries that were not part of the second world, communist

Development in external trade of and migration to and from Denmark and Hungary between 1986 and 2006 Causes and effects of the transition of foreign trade and migration in Denmark and Hungary

895 words - 4 pages Appendix I.Table 1.1.Table 2.1.OECD, Euromonitor International from International Monetary Fund (IMF), International Financial StatisticsTable 3.1 Denmark's export by commodity groupTable 4.1 Denmark's foreign trade by regionsTable 5.1 Denmark's export market II.Tables 1.2Hungary's export, import and trade balance in the last 20 yearsKozponti Statisztikai

American Involvement in Iraq and its Consistency with Canadian Foreign Policy

852 words - 3 pages without the cooperation of the United Nations or many of its allies in thewestern world.Consistency With Canadian Foreign PolicyIn most previous foreign conflicts, the viewpoints of Canada and the United States have notgreatly differed. However, in the current conflict regarding Iraq and the United States, there areAmerican policies that are in direct conflict with official Canadian foreign policy, in particularseveral of Canada's foreign policy


2140 words - 9 pages 2001EHR: MANAGEMENT- EMPLOYEE RELATIONS Research Essay (Individual) DEGREE OF CHOICE OF EMPLOYERS IN CONDUCTING THE RELATIONSHIP WITH EMPLOYEES AND TRADE UNIONS CONTENTS Introduction: 3 Employer’s Choice in Employer and Employee Relations: 3 1. Level of Employee power present: 4 2. The potential benefit of a mutually acceptable relationship: 5 3. Issues of Employment Rights: 6 4. Potential Harms of Employer’s practice

Veiling the Truth: A Look at How the Hijab is used as a tool of Oppression and Resistance in Iran With Comparisons to Indonesia

3230 words - 13 pages distracting to men and that the hijab is a necessity. Women are placed in a subordinate role that they cannot escape, unless changes are made. “Since the status of women has changed drastically, feqh must come up with new rulings to reflect this change” (Mir-Hosseini 2003: 49). “Women are far from legal equals of men” (Najmabadi 2000: 30). Indonesian women also face many hardships with veiling. Veiling is not a popular norm or behavior in Indonesia

Is America and Empire? Can we square the policies of an empire with democracy and foreign affairs?

1225 words - 5 pages carrier battle groups on watch in every ocean; guarantees the survival of countries from Israel to South Korea; drives the wheels of global trade and commerce; and fills the hearts and minds of an entire planet with its dreams and desires. (1)In the past century, our military advancements have put our military above any other countries' military.Not everyone in the world believes that a democratic republic is the correct choice in government

Agree or Disagree: Both President Kennedy and President Johnson were more successful in dealing with domestic affairs than foreign affairs

2937 words - 12 pages Both President Kennedy and President Johnson were more successful in dealing with domestic affairs than foreign affairs. Kennedy focused on domestic policies such as Economic Policies and Civil Rights, while Johnson focused on domestic affairs such as the War on Poverty, Education and Health and Civil Rights.In President Kennedy's foreign policy, Kennedy had a new philosophy. He first tried to move away from Secretary of State, John Dulles's

Similar Essays

Bulgaria's Foreign Trade With Chocolate Essay

1302 words - 5 pages Current Trends in Bulgarian Trade with Chocolate According to a report of Euromonitor International , in 2013 the average growth of the chocolate industry in Bulgaria was 6%. Consumer confidence has been restored after the slowdown of the economy between 2009 and 2012 and, as a result, consumer spending on chocolate has risen. The leadership in chocolate confectionery in 2013 belongs to Mondelez Bulgaria. The company accounts for a 43% value

The Differences Between Foreign Trade And Foreign Direct Investment

1796 words - 7 pages foreign locations. (Holt, Wigginton, 2002) • Export – involves selling domestically produced products in foreign market through brokers or overseas distribution centres. (Holt, Wigginton, 2002) • “Entrepot”– import goods for re-export after previous operations Every country has lack of any resource and due to this fact they have to trade goods etc. with other countries worldwide. Nowadays during days of globalization is demand for goods and

Canadian Foreign Affairs And International Trade

2175 words - 9 pages department to persuade foreign investors as well as to give assistance to companies who are planning to invest in the country (Government of Canada, 2013). Other than two agreements mentioned above, it is also involved with other trade agreements and economic organizations. For free trade: World Trade Organization (WTO), Asia Pacific Economic Cooperation (APEC). Economic organization: Organizations for Economic Cooperation and Development (OECD), North

American Foreign Policy Position Paper: Trade, Sanctions, Debt, And Investment

5918 words - 24 pages pertinent than our foreign dealings with trade, sanctions, debt, investment and currency. In each area, the best program comes directly from the foundation of America. We must liberalize our trade, opening up our markets to outside investment. We must let American corporations move abroad freely, without trade barriers that hurt the American public. We must end the numerous unnecessary and unproductive sanctions we have placed on other nations