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Foreign direct investment could provide higher profits through decreased operation costs in the host country. Foreign direct investment is able to increase employment, thus having a multiplier effect that allows growth to be stimulated. Firms may wish to participate in foreign direct investment to widen their export base for goods or services. 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. Large amounts of potential customers will find out about your firm when you undertake foreign direct investment. A firm which offers foreign direct investment to developing countries may find itself making more profits. A market analysis is the best way to start off, when firms are considering foreign direct investment.
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