What attracts foreign investments?
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Countries that do not receive large amounts of foreign investment because their markets are small or because they lack such natural resources as petroleum and natural gas which are attractive to investors, or because foreign investors have little confidence in their investment opportunities, have much to gain.
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Foreign direct investment (FDI) is an important element of the global economy and a central component of economic development strategies of both developed and developing countries. ... Democratic countries are predicted to attract as much as 70 percent more FDI than their authoritarian counterparts.
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