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Any firm that wishes to take part in foreign direct investment should realize that it is important to understand the market expectations. From a business perspective, foreign direct investment is a clever move because it helps to establish better global links. In many cases foreign direct investment is able to provide a firm with new markets and marketing channels. Foreign direct investment is able to help firms to become more actively involved in international business activities. The inflow of foreign direct investment aids in the transfer of technology and knowledge from one country to another. Foreign direct investment is able to help expand a company's markets and avoid trade restrictions that have been set by the governments. Foreign direct investment may improve a firm's organizational technologies and management skills, and as such can provide a strong stimulus to economic development.
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