what are the benefits of foreign investment
Answers
Foreign direct investment benefits the global economy, as well as investors and recipients. Capital goes to the businesses with the best growth prospects, anywhere in the world. Investors seek the best return with the least risk. This profit motive is color-blind and doesn't care about religion or politics.
That gives well-run businesses, regardless of race, color, or creed, a competitive advantage. It reduces the effects of politics, cronyism, and bribery. As a result, the smartest money rewards the best businesses all over the world. Their goods and services go to market faster than without unrestricted FDI.
Individual investors receive the extra benefits of lowered risk. FDI diversifies their holdings outside of a specific country, industry, or political system. Diversification always increases return without increasing risk.