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Foreign direct investment

A basic requirement that a firm should take into account when considering a foreign direct investment is need for competitiveness. Foreign direct investment may stimulate the export and import of a country, consequently increasing the variety and quality of available goods. A firm which offers foreign direct investment to developing countries may find itself making more profits. Foreign direct investment helps in increasing the salaries of the workers, thus enabling them to get access to a better lifestyle and more facilities in life. Large amounts of potential customers will find out about your firm when you undertake foreign direct investment. A desire to be close to large supplies of raw materials may be incentive for supporting foreign direct investment. Firms may wish to participate in foreign direct investment to widen their export base for goods or services.

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