ifwe open FDI in a country how does it affect supply chain? (800-1000words)
Expert Answer
Foreign Direct Investment is the investment of the foreigncountry through business in the domestic country. It would bringforeign expertise and funds of the foreign company in the domesticcountry. This investment brings in lot of employment opportunitiesand thus is beneficial for the home country.
It affects the supply chain in the form of aggregate demand andaggregate supply. Aggregate supply moves outward as the supply ofthe products increases due to many foreign firms which enter in thedomestic country and invest in the same, start producing and thusthe aggregate supply
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