Discussion Forum for Chapter-5

Here are the main functions of Foreign Direct Investment (FDI) explained in simple English:

Here are the main functions of Foreign Direct Investment (FDI) explained in simple English:

by Abir Al Rashid Tasin -
Number of replies: 0

1. Brings Money to a Country

  • FDI brings money into the host country, which helps build factories, roads, and other important facilities.

2. Shares New Technology

  • Companies that invest in another country often bring new machines, tools, and knowledge to improve how things are done.

3. Creates Jobs

  • FDI helps create jobs for people in the host country by opening businesses and factories.

4. Increases Exports

  • FDI helps the host country sell more products to other countries by improving production and trade links.

5. Grows Businesses

  • FDI helps companies expand into new countries and reach more customers.

6. Builds Better Roads and Services

  • The money from FDI is often used to improve roads, electricity, and communication systems.

7. Improves Local Businesses

  • FDI encourages local businesses to improve their products and services to compete with international companies.

8. Builds Friendships Between Countries

  • FDI strengthens the relationship between the investor’s country and the host country, helping both sides grow.

9. Trains Workers

  • FDI helps teach workers new skills and knowledge, making them more productive.

10. Increases Tax Income

  • FDI companies pay taxes to the host country’s government, which can be used for public projects like schools and hospitals.