Question

why do government try to attract more foreign investment ?

Answer 1

the government try to attract more foreign investment for the following reasons:

foreign investments create new job opportunities in the country.

this is not only provides finance but managerial and technical personal and new technology in production also.

this encourages local enterprises to invest more in subsidiary services like Transport and training agents and in collaboration with foreign enterprises .

the social returns are greater than the private returns on foreign investment.

the government's get revenue when it taxes on profits of foreign firms or gets royalties from concession agreements.


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Answer 2

Question: Why do governments try to attract more foreign Investments?

Answer: Governments try to attract more foreign investments for the following reasons:

It provides the necessary capital for undertaking economic activities, which would in turn boost the GDP growth...

It leads to increased employment opportunities...

It provides the required tax income for the government...

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