Portfolio Essay Example | Topics and Well Written Essays - 2500 words - 1

Portfolio - Essay Example Hence, for a nation to be in the investment map, it must necessarily improve its diplomatic relations with developed markets and to offer incentives to access investment opportunities for foreign capital (Morrisset, 2000). Economists posit that FDI can possibly be infused if a country would a bit lower its protectionist policy to improve its macroeconomic performance and permeate the increase of growth rate in its domestic economy (Harrison, 1996). This refers about the need for more effort to make a specific region more attractive for investments. It’s argued that an increase in investment auger well for sustainable economic development within the region (Harrison, 1996). Such is possible if financial resources from domestic and international finance communities are integrated within a specific region or nation which opens its borders to world economy (Morrisset, 2000). However, countries adherent to borderless economy are clothe with policies protective of foreign investors and of enhancing human capital. A country interested of maximizing FDI for economic growth must improve its system of governance and domestic economic conditions, to increase the rate of its credibility at the international scale (Aaron, 1999). Experts contend that national credibility can be earned if national leaders advocate and adapt political and economic innovation, human development, infrastructural development, and investment attractiveness (Abraham., 2005). Political innovation refers to legislation of policies that are supportive of economic liberalization, works for the removal of protectionist policies, and attracting more investments using measures such as â€Å"international incentives to invest (Anderson, Dimaranan, Francois, Hertel, Hoekman, & Martin, 2001)..† However, while these policies support international trade and foreign investment, the protective and right–based policies significant to domestic stakeholders’ interests, land utilization, and resource