ABSTRACT
Foreign direct investment (FDI) can help to overcome static market failures in product markets with the inflow capital, technology and managerial knowledge. The dissidents of globalisation must deal with the fact that in the short run FDI is more efficient in implementing a given technology and obtaining operational know-how more quickly. Institutions, whose functionality and dynamism determine the competitive advantage of nations, are the key to achieving growth, promoting competition, and reducing transaction costs and information asymmetries. The main benefits of FDI in telecommunications appear to be the inflow of capital, infrastructure upgradation, heightened competition and the meeting of new consumer preferences through ICT. Policymakers are likely to discover that the issue of the creation and appropriation of intellectual property rights by translational corporations is one of the most obscure and controversial of all things considered.
