Question
- Question: Read on FDI and its benefits and what countries can do to encourage FDI.Read on FDI and its benefits and what countries can do to encourage FDI.
Answer
The FDI or the Foreign Direct Investment can be encouraged by a nation to attract the investors from other nations into its economy. This gives the people and the economy a well-structured way to communicate to the international investors to use the resources of a land and benefits of the resources an economy, mutually.
The benefits for the FDI in the nation of investment which have been used and encouraged economy for its own benefits like employment of the citizens, tax benefits from the business-like issues. The industry on the other hand invests to get the following:
• The people and the place of the investment makes the destination suitable for the business and its expansion. Thus, the benefits of the business and the needful investments are made to make the market surrounding the nation to grow. For an example the Apple of the US invested in China and developed a huge market for itself in there and the South East Asia.
• The natural resource of the economy can be used by the business investing in the market which makes the needful content to be created with the resources there like mines, manpower and skills etc.
• The investment in a new market generally gets a business some excellent and attractive infrastructure. Hence the use of the benefits has been made to make the most from the market and its offerings by the foreign business which is the source of FDI inflow.
• The expansion in the market size is gained with such diversification with FDI investments.
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