本篇文章主要是讲外国直接投资的增加，投资者认为，当个别国家更愿意开展友好的业务时，国家风险就会降低。正因为如此，投资者对投资公司更有信心。这仅仅意味着增加外国直接投资，增加兼并和收购。总体上导致商业企业内部现金流的增加(Latacz‐Lohmann and Hodge, 2001)。本篇新西兰论文代写文章由新西兰第一论文Assignment First辅导网整理，供大家参考阅读。
In this process there is increase in foreign direct investments. The investors feel that the country risk is reduced when the individual countries are more willing for an amiable business. Owing to this the investors feel more confident in investing in the companies. This simply means increase in foreign direct investments, increase in mergers and acquisition. Overall leads to increasing of cash flow within the commercial enterprises (Latacz‐Lohmann and Hodge, 2001).
There is also formation of newer companies and ventures owing to this process. By opening the borders more investors are bound to invest in the country. This leads to overall progress in the economy and also development of newer lucrative commercial ventures.
Free trade allows in easier partnership with other commercial enterprises from different countries. This leads to increasing of partnership and increase of production of innovative products.
From this analysis, it would seem like there are only advantages in this process. Nevertheless there are some key issues that arise because of FTA in the commercial enterprises and within the governmental systems. These are probed in detail in the following.
FTA needs to be framed properly. It should be fair and should be procedural justice. In this process framing the FTA agreement in spite of the best intention certain inherent disadvantages are bound to occur. Some of the most criticized aspects of FTA have been probed in detail in the following:
Increasing outsourcing
As mentioned earlier FTA increases employment but the issue is increased employment opportunities disproportionately. Companies start to invest in other countries and employee people for cheaper labour in those countries. This leads to short term gains in the commercial enterprises (Latacz‐Lohmann and Hodge, 2001). It would seem as though they are increasing the cash flow. Nevertheless loss of jobs means that there would be loss in disposable income. The existing consumer base would reduce considerably in this process. There will be issues in distribution and maintenance of business operations in the parent country. Subsequently there will be lower number of investors and buyers for the product. Cash flow will be tilted towards a certain commercial enterprise in another country. The business operations of the parent company choosing to outsource jobs will face loss of capital. This in turn would lead to more apprehensions and loss of brand image of the product in the country of origin (Latacz‐Lohmann and Hodge, 2001). This would cause negative spiralling of events. This would subsequently lead to sustenance issues within the companies. Outsourcing of jobs also leads to certain level of loss of the original proprietary information (Latacz‐Lohmann and Hodge, 2001). This also causes unemployment rate and disturbances in the original system.
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