The functions of FDI are:

1. Capital Formation – Provides essential funds for investment.

2. Technology Transfer – Brings advanced technology and expertise.

3. Employment Generation – Creates direct and indirect job opportunities.

4. Human Capital Development – Enhances local workforce skills.

5. Market Access – Opens doors to international markets.

6. Infrastructure Development – Supports infrastructure growth.

7.Increases Competition – Promotes efficiency and innovation.

8.Generates Government Revenue – Contributes tax revenue for public services.