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By participating in foreign direct investment, a firm might receive benefits in form of tax concessions. Foreign direct investment is able to help firms to become more actively involved in international business activities. Foreign direct investment inflow results in an increase in the number of employment opportunities for people living in the host country. It is advisable for many firms to participate in foreign direct investment, it can provide a source of new technologies, capital, processes and products. 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. From a business perspective, foreign direct investment is a clever move because it helps to establish better global links. Foreign direct investment may stimulate the export and import of a country, consequently increasing the variety and quality of available goods.
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