why do governments try to attract more foreign investment
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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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Governments try to attract foreign investment because it helps to create more job opportunities in a country, directly as well as indirectly in service sector. We can gain additional taxes by taxing the profits made by foreign investments.
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