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Essay text:
This involves a flow of capital from one country to another to build a factory, purchase a business or buy real estate." (http://www.afsc.org/trade-matters/learn-about/glossary.htm).
In New Zealand foreign direct investment plays a pivotal part in the country's economy growth, this is shown by the fact that over the past two decades the flow of F.D.I in New Zealand has increased substantially and that FDI stocks have risen from around NZ$ 300 million in 1981 (pre-economic reforms) to NZ$49.3 billion for the year ending March 2001, this will be looked at in more detail in section 1.2. "Foreign direct investment (FDI) has the potential to generate employment, raise productivity, transfer skills and technology, enhance exports and contribute to the long-term economic development of the world's developing countries...
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