Question

Why will host countries and home countries intervene and promote FDI?

Answer 1

=>Answer ::

In Today World Every Country Want High Foreign Direct Investment In Their Country Because There are lots Of Benefit To Promote And Attract The New FDI In The Country Some of Its Advantages Are As mentioned Below For Host Country ::

(1) With The Help Of FDI Host Countries Export Is Increased Because FDI Increase Efficiency And Provide Financial Support To The Domestic Industries So Export Increase For The Host Country

(2) FDI Provide External Capital and Higher Revenue Investment In Host Country So It Provide Boost To the Economic Development In The Country

(3) In FDI Foreign Industries And Firms Enter In The Market Of Host country So It Provide Competition For Domestic Industry So It Helps to Increase Production In The Country

(4) FDI increase Productivity In Country And increase New employment In The Country So Countries Economic Development And Its Overall Economic Growth And GDP increase.

(5) FDI Provide Investment In The Country So It Is Usefull To Develop countries Infrastructe So Countries Backward Area Also Developed By FDI

(6) FDI Provide Financial Support to The Host Countris And It Provide new Technology So Its Usefull For Country To Increase Its Development

(7) FDI Provide Foreign Currency To Central Banck of The Country So Central Bank Maintain Countries Currency Exchange Rate In The Global Market

So For The Reason Of Above Advantages Of FDI Host Countries Or Home Countries Interven And Promote FDI In The Country To Take Advantage Of Global Market In The Domestic Country