Critically discuss how foreign divestment can affect the host country and assess whether foreign divestment is beneficial or harmful to the host country.

Critically discuss how foreign divestment can affect the host country and assess whether foreign divestment is beneficial or harmful to the host country. Order Description Although FDI is expected to bring in an array of benefits to the host country, whether FDI benefits a host country is a much debated argument because there are positive effects as well as negative effects of FDI. Effects of FDI can materialise either as direct effects (own firm effects) or spillover effects (effects on other firms and on the host country environment). There is a large literature that examine the effects of incoming FDI on the host economy. Although FDI represent a long term commitment, MNEs frequently divest their subsidiaries in foreign locations. Foreign Divestment is the counterpart to Foreign Direct Investment (FDI) where an MNE divest its stake in a foreign subsidiary. Foreign divestment is considered as one of the most neglected research areas in international business. But this fact is changing with the growing attention received by foreign divestment activities (see for example, UNCTAD (2015)). Increasingly many scholars are interested in studying foreign divestment, however, studies examining the impact of foreign divestment on the divested firms or host economies are still very limited. You first need to read the literature on the impact of FDI in order to understand how FDI can affect the host country. This will enable you to comprehend the positive and negative effects of FDI. There is a large literature on this topic, therefore, this task is fairly straightforward. You also need to read the literature on foreign divestment. After reading the literature on impact of FDI and foreign divestment, you need to critically discuss whether foreign divestment is beneficial or harmful to the host country. The impact of foreign divestment on the host country is largely understudied and there is a very limited literature on this topic. Therefore, only relying on the literature on foreign divestments may not be sufficient to develop a coherent thesis. Thus, your task involves (1) relating your discussion to available literature on foreign divestments and (2) extending arguments from the literature on the impact of FDI to understand the impact of foreign divestments. Here are some articles to start off with... United Nations. 1992. World Investment Report 1992: Transnational Corporations As Engines of Growth: Transnational Corporations and Management Division, Department of Economic and Social Development, United Nations, New York. Lipsey, R. E. 2004. Home- and Host-Country Effects of Foreign Direct Investment: in Challenges to Globalization: Analyzing the Economics University of Chicago Press. Also available at: https://www.nber.org/papers/w9293 Moran, T. H. 2005. How Does FDI Affect Host Country Development? Using Industry Case Studies to Make Reliable Generalizations: Institute for International Economics Center for Global Development. Görg, H. & Strobl, E. 2001. Multinational Companies and Productivity Spillovers: A MetaAnalysis. The Economic Journal, 111(475): F723-F39. Belderbos, R. & Jianglei, Z. 2006. Foreign Investment, Divestment and Relocation by Japanese Electronics Firms in East Asia. Asian Economic Journal, 20(1): 1-27. UNCTAD. 2015. World Investment Report 2015: Reforming International Investment Governance. New York and Geneva: United Nations Conference on Trade and Development Gómez-Plana, Antonio G.; Latorre, María C. (2014): When multinationals leave: A CGE analysis of the impact of divestments, Economics: The Open-Access, OpenAssessment EJournal, Vol. 8, Iss. 2014-6, pp. 1-41, https://dx.doi.org/10.5018/economicsejournal.ja.2014-6 MEYER, K.E. and SINANI, E., 2009. When and where does foreign direct investment generate positive spillovers? A meta-analysis. Journal of International Business Studies, 40(7), pp. 1075-1094. Guidance on tackling your essay I suggest that you address the question in the following way: Stage 1 – broad reading To answer the essay question, you will need to read widely around the topic. You need to find and read academic articles, mainly academic journal articles, relevant to the essay question. Few references are given below each essay question but this is not an exhaustive list, you need to do your own literature review. Stage 2 – selecting material which is relevant Having undertaken wide reading, you need to bring your ideas together. Try to make a list of the theories/concepts/arguments you have identified and ensure that you understand them (this might mean doing some further work). What issues are interesting here – do all of the authors agree with one another? Stage 3 – organising the material you have identified into an argument This is creative part which demonstrates that you are able to undertake ‘critical’ and ‘evaluative’ work. Your task is to convey that you have understood the available literature, bring in your own arguments and put them together in a meaningful and original manner (not copying other people). You need to think about the logical way of grouping different ideas and how you can best convey that. Stage 4 – drafting your essay Essays take a long time to construct and everybody goes about it in a different way. It is likely that you will have to draft it and edit it a number of times. The first attempt may look very rough. Stage 5 – polishing your essay Edit, edit, edit. Check that your introduction refers to the question. Make sure your references are presented in the right format. Does your essay have a conclusion? What makes your work original and interesting? Excellent use of academic literature. Extensive use made of appropriate journal articles. The essay demonstrates a good familiarity with the literature and integrates it well into the development of the essay and its arguments. Excellent relevance. All of the material is directly and explicitly relevant to the question. Excellent argument. The essay is structured around an explicit argument that is clearly articulated and demonstrates innovative insights into the subject matter. Excellent writing style. A good use of language and vocabulary and sentence construction. Engaging to read. Ideas are linked logically and fluently.