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An assessment of internal resources is necessary before considering to pursue a plan for foreign direct investment. Companies that take part in foreign direct investment get opportunities for exploring new global markets, thereby generating higher incomes and profits. Foreign direct investment is able to succeed in promoting economic development and growth to the host nation. In many cases foreign direct investment is able to provide a firm with new markets and marketing channels. A desire to be close to large supplies of raw materials may be incentive for supporting foreign direct investment. Foreign direct investment is important to allow developing countries to have greater access to research and development. Foreign direct investment may open a wide spectrum of opportunities in the trading of goods and services in the host country both in terms of import and export production.
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