I wrote into the assignment criteria box Essay Example | Topics and Well Written Essays - 2500 words

I wrote into the assignment criteria box - Essay Example orm of foreign direct investment, the companies buy controlling stakes in domestic firms and then reenergize the whole structure of the firm to make it more profitable and competitive. Their strategy have been quite simple as even a layman would believe in putting money in those areas or economy where the market if not growing at some astronomical rate but at least have a positive growth despite sluggishness (Krugman, 1998). The merger movement around the world has caused massive effect with growing rate of cross-border mergers and acquisitions. Being termed as an important tool for investment from industrial nations to developing ones, these merger and acquisition are relatively small size in if compared with mergers as compared to those in advanced countries, it gives the receiving developed nation a much needed boost to the economies of their nations. The involvement of transnational companies in the domestic market also provides the developing nation an environment of technologic al and managerial efficiency. The major bane in the growth of developing nation has been the lack of modern approach in management practices and use of technology. The indigenous research of the government and other agencies has been either lagging behind or has failed to yield any result. The need of the hour for the government is to adopt newer policies and its approach to engage transnational companies in its territory would yield higher growth in GDP and per capita income. The capability of domestic companies also gets strengthen in a pro-growth environment. As a whole the government’s agenda of creating an era of growth and prosperity gets fulfilled in various phases. The purpose of government selling its controlling state in public sector units or state enterprises is for strengthening the support system of the nation. Support system in this scenario is actually the infrastructure that would provide the base to individuals, investors and other enterprises in delving the nation