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Countries that receive foreign direct investment can develop the human capital resources by getting their employees to receive training on the operations of a particular business. Any firm that wishes to take part in foreign direct investment should realize that it is important to understand the market expectations. Foreign direct investment is important to allow developing countries to have greater access to research and development. It is advisable for many firms to participate in foreign direct investment, it can provide a source of new technologies, capital, processes and products. Many countries have lower transportation costs, benefiting the firms that give foreign direct investment to a great extent. In many cases foreign direct investment is able to provide a firm with new markets and marketing channels. Foreign direct investment may prove to be the best way to expand foreign markets when licensing seems unsafe.
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