Advantages of foreign direct investment

Advantages of foreign direct investment

An investment is defined as any expenditure that is intended to get more and better resources.Through it will lead to economic progress in any area either public or private sector, both domestic and foreign.In the case of foreign direct investment there are some advantages that favour.

The investment can be allocated to real estate or services, or for scientific purposes, for infrastructure and facilities for the development in technology, machinery and equipment, education, health, tourism, among other alternatives.

Another very important advantage is that foreign direct investment is usually private, and being private is more likely to succeed because these are resources to generate the highest possible return.

More advantages of foreign direct investment

Foreign investment involves an injection of capital to the economy where investment, thus foreign direct investment helps a country to meet its financing needs.

Foreign direct investment also has the advantage that tends to be more stable than other flows which can be more speculative, this is because foreign direct investments are aimed at long – term projects, which will mean that there is a greater level of economic growth, more jobs, more exports and more foreign exchange.

Among the most outstanding advantages in foreign direct investment it is given a technological transfer by introducing innovative processes, or new products, etc.

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