Foreign Direct Investment and International Investing Foreign direct investment also plays an important role on a microeconomic level. Final Thoughts on Foreign Direct Investment Foreign direct investment can be used by international investors on both a macro and microeconomic level.
Some countries regulate how much control foreign corporations and investors can have in their domestic companies. Domestic companies that expand into foreign markets can realize significant growth. As a first step in addressing this topic, we use detailed county-level panel data from South Carolina across 5 year intervals from through to investigate the effect of foreign manufacturing firms on local labor markets and on the level and distribution of local government budgets.
If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form. There is some concern that foreign direct investment may disrupt local industry and economies by attracting the best workers and creating income disparity.
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Foreign direct investment has many drawbacks, despite its overall effectiveness in promoting growth. For international investors, seeking out investments in countries with sustainable and growing foreign direct investment is a popular strategy.
Be Aware of the Risks. By acquiring a controlling interest in foreign assets, corporations can quickly acquire new products and technologies, as well as sell their existing products to new markets.