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Many countries have lower transportation costs, benefiting the firms that give foreign direct investment to a great extent. Companies that take part in foreign direct investment get opportunities for exploring new global markets, thereby generating higher incomes and profits. By participating in foreign direct investment, a firm might receive benefits in form of tax concessions. An assessment of internal resources is necessary before considering to pursue a plan for foreign direct investment. 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. Foreign direct investment may improve a firm's organizational technologies and management skills, and as such can provide a strong stimulus to economic development. Large amounts of potential customers will find out about your firm when you undertake foreign direct investment.
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