Question

why do governments try to attract more foreign investment ?

Answer 1

(a) It helps in improving the financial condition of the people by accelerating growth of the economy.
(b) Foreign investments create new job opportunities in the country, directly as well as indirectly in support services like transportation.
(c) The government gains additional taxes by taxing the profits made from foreign investments.

Answer 2

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.