Published on: Wed Nov 19 2008
This is an assignment to write about the impact of foreign direct investment in your home country. When a business based in a home country moves to develop a physical presence within another country (the host country) foreign direct investment has taken place within the host country. The host country will feel different effects, depending on the exact local economy and culture, but in this case, I am considering my home, which is New York. The introduction of a new business will without a doubt cause change. There are potential effects on the environment, the labor pool, and culture. Within my local geographic area, the arrival of Ikea caused a shift within the market. The arrival of the first Ikea in Brooklyn was greeted with enthusiasm and trepidation. There was widespread concern about job creations and traffic congestion. At first, in 2004, the city council easily approved the plan, but after resident outcry, Ikea took steps to ease the concerns of the residents of Red Hook, Brooklyn. They promised to build a waterfront park, initially offer employment opportunities to the local residents and, one of the most popular plans, provide free water ferry service. There was still opposition, but finally the Red Hook Ikea opened for business in June 2008. The immediate effects were apparent. People love taking the water ferry to Ikea, and the waterfront ‘esplanade’ is a big attraction. After Ikea has been in business for a month residents are talking about how the increased customer traffic is having a spill-over effect into local eateries and even into higher end furniture stores. The local government was instrumental in the construction of the Brooklyn Ikea. The council support plus the desire of the local populace, who felt a strong desire for the jobs Ikea would provide made ‘Ikea in Brooklyn’ happen. As a failed Ikea plan for a store in New Rochelle proves, resident support is essential. Panel Approves Plan by Ikea to Open Store in Red Hook Opposite Sides of an Ikea: Jobs vs. Traffic IKEA 'Confident' About Finally Opening In Brooklyn Ikea's First Weekend in Red Hook: Shrug Brooklyn Neighbors Admit a Big Box Isn’t All Bad Ikea Cancels Plans for Store In Westchester