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Foreign direct investment helps in increasing the salaries of the workers, thus enabling them to get access to a better lifestyle and more facilities in life. Foreign direct investment may be attempted to gain the benefits of countries that are rich in natural resources such as oil and minerals. A market analysis is the best way to start off, when firms are considering foreign direct investment. Foreign direct investment is able to help firms to become more actively involved in international business activities. Foreign direct investment is able to help expand a company's markets and avoid trade restrictions that have been set by the governments. A desire to maintain share of a market should be incentive enough to support foreign direct investment. A desire to be close to large supplies of raw materials may be incentive for supporting foreign direct investment.
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