The majority of FDI invested in host country came from multinational companies which have competitive advantages and

operate in the global market. This leads to several benefits which FDI bring for host countries. The host countries become more and more harmonized in the world economy via incentives of trading activities. Moreover, FDI also creates more opportunities to approach and expand the market which is very important to stimulate economic growth. An illustration of this is approach the US or EU market. Firms located outside the EU and US have faced many challenges to approach these market but it is easier for multinational companies which have reputation and recognition from consumers over the world. Thanks to this, the payment balance of developing countries will be stabilized via increasing export. Export activities will bring amount of foreign currency to finance import which occupies a large proportion in payment balance of developing countries.