Factors of foreign direct investment in Algeria Essay

Factors of foreign direct investment in Algeria - Essay Example France is used as the main example. Foreign direct investment can be defined as a foreign ownership of the productive assets in a country. These assets can be mines, land, factories among others. In the present world, the issue of the foreign direct investment has become very important since foreign investments promote economic Globalization. Foreign direct investments also have a significant implication to the domestic economy.There are several cultural, social and economical factors which favours the domestic investments. In each of these categories of factors, some aspects favour while others discourage foreign direct investments. Currently, the Algerian government has discovered the importance of the foreign direct investment. In connection to this, the government has employed several factors in an effort to promote the foreign direct investment.Over the past, direct investments have been faced with numerous issues. Some have been against while others have been facilitating the d irect investments in the country. For instance, several codes have been implemented with some obstructing the direct investments. Foreign investors in Algeria can be traced long time ago. Fort instance, there were several British firms in Algeria by 1954. Between 1963 and 1983, the investment codes during the time were very restrictive. Under these codes, foreign investors were not allowed to own an independent company or investment venture. In other words, the foreign investors were only allowed to own joint ventures with state-owned companies.