Foreign Direct Investment in Developing Countries Article

Foreign Direct Investment in Developing Countries - Article Example This topic bears importance in that if wielded appropriately it may just be the ticket out of poverty lines for developing nations. Growth of the economy by seven or eight percent is achievable but only if there is investment of around 35 to 40 percent of the GDP. National savings undoubtedly fall short of this by a huge margin. Therefore, it is up to foreign borrowing and investments to meet this gap. Thus, it is imperative for the governments of developing nations to providing incentives to investors. This paper will focus on the foreign direct investments in developing countries and the impact it causes to both participating parties (Moran 75). The political and social changes of late 20th century and the recent technological advancements have brought about immense changes in the economic situation of the present world. The planned economies are failing and their retreat from the global economy. The development and the rising influence of free and open market economies and the ever stronger tendency towards a world economy. Predicts broad changes in various interacting phases (e.g. economical, political and social) of the global community in the future. The old restrictions and monopoly of the old world transformed into friendly smiles and gentle politics with policies of closed economies being dumped and nations embracing the open capitalist economies. This phenomenon has puzzled many. Everyone however seems to agree on a single point. There would be no foreign direct investment if the markets were perfectly competitive. Therefore, markets are to work efficiently and ensuring there is no barriers in the form of trade or c ompetition; then the phenomenon of FDI is much more likely. Many theories have tried explaining this phenomenon. These theories attempt to explain this phenomenon based on different assertions such as perfect and imperfect competition of markets. The currency based methods as well as those that

Nuclear Power and Solar Power Essay Example | Topics and Well Written Essays - 500 words

Nuclear Power and Solar Power - Essay Example In a nuclear power station, the element uranium is applied in the process of producing nuclear power. The process of producing nuclear energy takes place in a nuclear reactor. In the nuclear reactor, the fuel used is uranium rods, and through nuclear fission, heat is generated. Heat in the nuclear core is generated when neutrons split in half after shattering into nucleus of the uranium atoms. Thereafter, water is passed through the heat, and as a result, steam, which drives turbines, is produced. Generators, connected to these turbines produce electricity (Petersons 23). It is also possible to produce nuclear energy via fusion. Fusion generally utilizes tritium or deuterium as a fuel, while recent advances have seen boron and lithium used. This process is, however , is expensive and complex thus has yet to be utilized commercially. Spent nuclear fuel can be assimilated into fuels of mixed oxides, and this is done in large scale, in France and Britain (Petersons 34). However, France, the most efficient of the assimilators, only reprocesses 28% of fuel used yearly. In a solar plant, sunlight is converted to electric energy via PV or CSP. CSP or concentrated solar power utilizes lenses and systems for tracking in order to focus large sunlight areas into smaller beams (Petersons 52). PV or Photovoltaics utilize Photoelectric effect to convert sunlight into energy, which is electricity. Commercial CSP plants were established commercially in the 1980s (Petersons 54). PV has been utilized since the 1860,s after fears on the â€Å"foreseeable† shortage of coal. Rationally, the facts are stacked in favor of solar energy. Recent studies by NC WARN show that costs related to nuclear energy are going up with the most recent estimate being 20 ¢$/kwh, while costs related to solar energy are going down, recently estimated at 15.9 ¢/kwh, before transmission charges at the site (Petersons