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Foreign direct investment could provide higher profits through decreased operation costs in the host country. Foreign direct investment inflow results in an increase in the number of employment opportunities for people living in the host country. 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. Foreign direct investment is able to help firms to become more actively involved in international business activities. A basic requirement that a firm should take into account when considering a foreign direct investment is need for competitiveness. Foreign direct investment may turn out to be the source of high profits that a firm will pass on to its employees.
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