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    By encouraging foreign direct investment (FDI), host nations can access technology that increases productivity and competitiveness. FDI also attracts talented managers who can train local workers and improve the international competitiveness of domestic companies. However, investing abroad sends resources out of home countries, which has fewer resources available for domestic development and economic growth, though profits from foreign assets can increase a home country's balance of payments and available resources.

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    By encouraging foreign direct investment (FDI), host nations can access technology that increases productivity and competitiveness. FDI also attracts talented managers who can train local workers and improve the international competitiveness of domestic companies. However, investing abroad sends resources out of home countries, which has fewer resources available for domestic development and economic growth, though profits from foreign assets can increase a home country's balance of payments and available resources.

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    10 views1 page

    Obtain Resources and Benefits

    Uploaded by

    blahblahblah
    By encouraging foreign direct investment (FDI), host nations can access technology that increases productivity and competitiveness. FDI also attracts talented managers who can train local workers and improve the international competitiveness of domestic companies. However, investing abroad sends resources out of home countries, which has fewer resources available for domestic development and economic growth, though profits from foreign assets can increase a home country's balance of payments and available resources.

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    © All Rights Reserved
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    Obtain Resources and Benefits

    Access to technology – Investment in technology, whether in product or processes, tends to have


    increase the productivity and the competitiveness of a nation. That is why host nations have a strong
    incentive to encourage the importation of technology.

    Management Skills and Employment – By encouraging FDI, some nations can attract talented
    managers to come in and train locals and thereby improve the international competitiveness of their
    domestic companies.

    REASONS FOR INTERVENTION BY THE HOME COUNTRY

    Investing in other nations sends resources out of the home country

    As a result, fewer resources are used for development and economic growth at home. On the other
    hand, profits on assets abroad that returned home increase both a home country’s balance of
    payment and its available resources.

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