Question

How can we attract more investment in a country?​

Answer 1

Answer:

A weak exchange rate in the host country can attract more FDI because it will be cheaper for the multinational to purchase assets. However, exchange rate volatility could discourage investment. Foreign firms often are attracted to invest in similar areas to existing FDI.

Explanation:

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Answer 2

Reduce restrictions on FDI. Provide open, transparent and dependable conditions for all kinds of firms, whether foreign or domestic, including: ease of doing business, access to imports, relatively flexible labour markets and protection of intellectual property rights. Set up an Investment Promotion Agency (IPA).