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Foreign direct investment

Advantages of foreign direct investment include things such as the establishment of better education and training systems. Foreign direct investment is able to increase employment, thus having a multiplier effect that allows growth to be stimulated. From a business perspective, foreign direct investment is a clever move because it helps to establish better global links. In many cases foreign direct investment is able to bring in advanced technology and improve the skills of workers. Foreign direct investment could provide higher profits through decreased operation costs in the host country. Large amounts of potential customers will find out about your firm when you undertake foreign direct investment. An optimal condition that a firm should bring along when planning a foreign direct investment is basic competitiveness in their sector.

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