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Foreign direct investment can prevent firm's know-how from being used by other firms, thus maintaining a comparative advantage on the market. Firms that invest towards foreign direct investment may gain large sums of tax revenue from the profits of their firm. 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 may be attempted to gain the benefits of countries that are rich in natural resources such as oil and minerals. Foreign direct investment is a good way to improve a firm's sales by increasing the amount of available markets. The inflow of foreign direct investment aids in the transfer of technology and knowledge from one country to another. Considering the amount of competition in local markets nowadays, foreign direct investment may win those additional markets that could allow your firm to dominate on a global scale.
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