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A desire to maintain share of a market should be incentive enough to support foreign direct investment. The inflow of foreign direct investment aids in the transfer of technology and knowledge from one country to another. Foreign direct investment may be attempted to gain the benefits of countries that are rich in natural resources such as oil and minerals. Foreign direct investment is able to help expand a company's markets and avoid trade restrictions that have been set by the governments. An optimal condition that a firm should bring along when planning a foreign direct investment is basic competitiveness in their sector. Foreign direct investment is able to increase employment, thus having a multiplier effect that allows growth to be stimulated. Foreign direct investment is important to allow developing countries to have greater access to research and development.
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