Will upload documents about the topic Essay Example | Topics and Well Written Essays - 2250 words

Will upload documents about the topic - Essay Example orld outward stock of FDI was estimated to be $10,672 billion in 2005 (EC, 2015).This huge amount was due to the increasing activities of multinationals. These activities of Multinational enterprises have a direct impact on rising amount of world GDP. The overall global foreign direct investments have been fluctuating over the last few years. One of the reasons for this was the economic and financial crisis that has affected the world economy. Economic crisis of 2008 has changed the behavior of the international investors and they have become more cautious before making investment in other countries. If the Foreign direct investment flow for the last few years has been analyzed; then a fluctuating trend can be identified. FDI flows had declined in the year 2012. However this flow had increased again in the year 2013. This increase in the FDI Flows was caused in the era of 2010 and 2013 because FDI flows during this period were less influenced by the global financial and economic crisis. Total FDI outflows increased approximately by 57Â  % in the year 2011. From this, the equity capital and reinvested earnings were the main cause of this increment as reported by EC (2015). However, in the year 2012, outward flows of FDI dropped a gain. This decline in FDI was caused due to reduced FDI activity with some traditional partners. Then in the year 2013, the FDI flow rose again up to 12Â  %. The main source of improving FDI was The United States and its direct investment into the European Union that rose approximately three times more than the year 2013 (EC, 2015). At the present time, Multinationals have become an integral part of life. Today, a local citizen can drive a BMW or Toyota. He can work at the IBM office while staying in his own country, eat at McDonalds, use an Apple cell phone, etc. All of these luxuries and facilities have been possible due to the existence of Multinationals Enterprises. It is due to these Multinational outlets that citizen of one country can