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Host countries receive new technology when a firm decides to partake in foreign direct investment. An assessment of internal resources is necessary before considering to pursue a plan for foreign direct investment. Any firm that supports foreign direct investment can gain valuable advantages when trading with other nations. 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. Foreign direct investment is important to allow developing countries to have greater access to research and development. Foreign direct investment may prove to be the best way to expand foreign markets when licensing seems unsafe. A desire to maintain share of a market should be incentive enough to support foreign direct investment.
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