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Foreign direct investment is able to increase employment, thus having a multiplier effect that allows growth to be stimulated. In many cases foreign direct investment is able to provide a firm with new markets and marketing channels. 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. 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 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. Companies that take part in foreign direct investment get opportunities for exploring new global markets, thereby generating higher incomes and profits. Firms that invest towards foreign direct investment may gain large sums of tax revenue from the profits of their firm.
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