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Foreign direct investment

Foreign direct investment may grant access to countries that represent some of the large and growing global markets. Foreign direct investment may stimulate the export and import of a country, consequently increasing the variety and quality of available goods. Any firm that wishes to take part in foreign direct investment should realize that it is important to understand the market expectations. A firm which offers foreign direct investment to developing countries may find itself making more profits. 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. 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.

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