TAX INCENTIVES AND FOREIGN DIRECT INVESTMENT IN NIGERIA

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SUMMARY  

Market size refers to the size of the host country's domestic market. Demirhan and Masca (2008), stated that FDI would be attracted to countries with large an expanding market. Large market size helps MNEs to benefit from economies of scale by producing a large quantities. With higher sales in such markets, the foreign investor is sure of adequate revenue and higher returns on investment all things being equal. Broadman and Sun (1997) revealed that China's huge market size was largely responsible for the massive FDI inflows the country attracted since early 1980s. The results of the studies of Bora (2013), and Ndem, Onyevbuchi and Udo (2014) all show that there is a significant and positive relationship between market size and FDI who stop in this regard, the size of the Nigerian market will be the largest population in Africa estimated at about 190 million people by the national population Commission in 2018 should be an attraction to potential foreign investors

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