The impact of foreign investment on economy has been a recurring theme in IELTS Writing Task 2, appearing roughly once every six months in actual tests. Based on analysis of past papers and current global economic trends, this topic is likely to remain significant in future examinations. Let’s examine some real test questions and provide sample essays across different band scores.
Analysis of Topic and Question Types
Recent IELTS exams have featured questions about foreign investment’s role in economic development, particularly in developing nations. Understanding how foreign direct investment boosts local economies is crucial for addressing these questions effectively.
Foreign investment impact analysis showing economic indicators and growth charts
Sample Question and Analysis
Some people believe that foreign investment is beneficial for economic development, while others argue it mainly benefits foreign companies rather than local communities. Discuss both views and give your opinion.
This question requires:
- Discussion of both perspectives
- Clear position statement
- Relevant examples
- Balanced analysis
Sample Essays with Different Band Scores
Band 8.5 Sample Essay
Foreign investment’s impact on economic development has become a contentious issue, with valid arguments on both sides. While I believe that foreign investment generally brings more advantages than disadvantages, it’s essential to examine both perspectives carefully.
Those who support foreign investment highlight several compelling benefits. Firstly, it creates significant employment opportunities for local workers, which directly improves living standards and reduces unemployment rates. Additionally, foreign companies often introduce advanced technologies and management practices, enabling knowledge transfer that enhances local workforce capabilities. For example, when Samsung established manufacturing facilities in Vietnam, it not only created thousands of jobs but also helped develop a skilled technical workforce.
However, critics raise legitimate concerns about foreign investment’s impact on local communities. They argue that profits are primarily repatriated to foreign countries, leaving limited financial benefits for host nations. Furthermore, local businesses may struggle to compete with large multinational corporations, potentially leading to market monopolization. Consider how global markets influence local investments in developing economies, where small local enterprises often face significant challenges.
In my view, while these concerns merit attention, the overall impact of foreign investment tends to be positive when properly regulated. Governments can implement policies ensuring foreign companies contribute meaningfully to local development through tax revenues, technology transfer requirements, and local content mandates. This balanced approach helps maximize benefits while minimizing potential drawbacks.
Band 6.5 Sample Essay
Foreign investment is an important topic in many countries today. Some people think it is good for the economy, but others say it only helps foreign companies. I will discuss both sides and give my opinion.
On the positive side, foreign investment creates jobs for local people. When big companies come to a country, they need many workers. This helps people get work and earn money. Also, foreign companies bring new technology and ways of working, which can help local workers learn new skills.
However, there are some problems with foreign investment. The biggest problem is that most of the money goes back to other countries. Also, small local shops and companies cannot compete with big foreign companies. This makes it hard for local businesses to grow.
I think foreign investment has both good and bad points, but it is mostly good for countries. If governments make good rules, they can make sure foreign companies help the local economy. This way, both foreign companies and local people can benefit.
Scoring Analysis
Band 8.5 Essay Features:
- Sophisticated vocabulary and complex structures
- Clear progression of ideas
- Effective use of examples
- Balanced argument with clear position
- Coherent paragraphing
Band 6.5 Essay Features:
- Basic but clear vocabulary
- Simple sentence structures
- Limited use of examples
- Basic argument development
- Some coherence but less sophisticated
Key Vocabulary
- repatriated (v) /riːˈpeɪtrɪeɪtɪd/ – sent back to country of origin
- monopolization (n) /məˌnɒpəlaɪˈzeɪʃən/ – process of gaining complete market control
- contentious (adj) /kənˈtenʃəs/ – causing disagreement or debate
- mandates (n) /ˈmændeɪts/ – official orders or requirements
- viable (adj) /ˈvaɪəbl/ – capable of working successfully
Conclusion
This topic remains crucial for IELTS candidates, particularly those from developing economies. Practice with similar questions focusing on how economic growth affects currency stability and related themes. Share your practice essays in the comments for feedback and improvement suggestions.
