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Considering the amount of competition in local markets nowadays, foreign direct investment may win those additional markets that could allow your firm to dominate on a global scale. Foreign direct investment is able to increase employment, thus having a multiplier effect that allows growth to be stimulated. When firms take interest in foreign direct investment they must realize that there are certain requirements that should be met, primarily the need for competitiveness of the firm. In many cases foreign direct investment is able to provide a firm with new markets and marketing channels. Foreign direct investment may prove to be the best way to expand foreign markets when licensing seems unsafe. Countries that receive foreign direct investment can develop the human capital resources by getting their employees to receive training on the operations of a particular business. Firms that invest towards foreign direct investment may gain large sums of tax revenue from the profits of their firm.
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