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Foreign direct investment

By getting involved with foreign direct investment, firms are likely to have some advantage when it comes down to the amount of trading partners. An optimal condition that a firm should bring along when planning a foreign direct investment is basic competitiveness in their sector. A firm which offers foreign direct investment to developing countries may find itself making more profits. Foreign direct investment is able to succeed in promoting economic development and growth to the host nation. The inflow of foreign direct investment aids in the transfer of technology and knowledge from one country to another. Foreign direct investment may stimulate the export and import of a country, consequently increasing the variety and quality of available goods. Foreign direct investment may grant access to countries that represent some of the large and growing global markets.

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