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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. Access to potential consumers may be established if a firm decides to participate in foreign direct investment. Foreign direct investment may turn out to be the source of high profits that a firm will pass on to its employees. Foreign direct investment may be attempted to gain the benefits of countries that are rich in natural resources such as oil and minerals. 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. Foreign direct investment may stimulate the export and import of a country, consequently increasing the variety and quality of available goods. By getting involved with foreign direct investment, firms are likely to have some advantage when it comes down to the amount of trading partners.
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