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Foreign direct investment

Often foreign direct investment brings along the fact that procurement of properties, buildings, and labour can be obtained at a fraction of the cost in host countries than would be the case within the company's home country. Foreign direct investment is a good way to improve a firm's sales by increasing the amount of available markets. Many countries have lower transportation costs, benefiting the firms that give foreign direct investment to a great extent. A basic requirement that a firm should take into account when considering a foreign direct investment is need for competitiveness. Firms that invest towards foreign direct investment may gain large sums of tax revenue from the profits of their firm. Advantages of foreign direct investment include things such as the establishment of better education and training systems. Foreign direct investment inflow results in an increase in the number of employment opportunities for people living in the host country.

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