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Advantages of foreign direct investment include things such as the establishment of better education and training systems. 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. Foreign direct investment can prevent firm's know-how from being used by other firms, thus maintaining a comparative advantage on the market. Many countries' governments offer financial inducements to any interested companies, making foreign direct investment very worthwhile. An optimal condition that a firm should bring along when planning a foreign direct investment is basic competitiveness in their sector. Foreign direct investment is able to increase employment, thus having a multiplier effect that allows growth to be stimulated. 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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