How is social media influencing foreign direct investments?

It is no longer a secret that social media has, and continues, to shape foreign direct investments as well as the global economic landscape. For years, it has been considered as a platform for engagement and communication between users, but now it is evolving drastically beyond that. Today, it is proving to be an effective way for businesses and governments to reach new foreign investors on a global scale.


Social Media and Advertising

Traditional practices of attracting FDI seem to rely on one-way mediums of communication such as direct mail, radio advertising, and printed brochures. While these tools can educate, they are not necessarily excellent at engaging the audience. Conversely, social media allows IPAs to locate and communicate directly with investors and site selectors. Besides, broadcasting your messages, using social media to attract foreign direct investment will enable you to narrow-cast your message.


One-stop-shop information hub

Before the adoption of social media, it was challenging to offer information to the targeted audience consistently. Social media have developed a communication system at our fingertips, where ideas, news, and content can be shared freely across the globe. Platforms like LinkedIn and TOP are one-stop-shops for investors to find data and information that was hitherto unavailable. Through business journalism, current investors have been encouraged to share their experiences and benefits, which then become available to the hordes.


Democratization of information

Prior to social media, people had to pay top dollars to get out information about them and their business. Today, companies have their own digital media content and thus break down the barriers of reaching new audiences. Moreover, even governments have a strong social media presence where investors can find information about the host country. For instance, by simply searching "what are foreign direct investments, Canada," you can freely acquire information about the reputation of Canada in FDIs as well as investors that have invested in Canada.


The disruption

Social media is a defining element of foreign direct invests or an entire economy, not by the international border but through the connections between countries and their conversations. While investments are in the form of exchange of experience, ideas, and knowledge, ownership is mainly expressed as reputation, social rankings, search placements, and hits. That has been made easier and free to express by social media.


Social Media and Transparency

Social media platforms can support user-generated content, and that has helped increase transparency in the FDI realm. Foreign investors can now share experiences with others, their thoughts about the host country, and other information that could benefit the hopeful investor. Besides, this transparency has developed extensive improvements in FDI, such as better negotiations since prospective investors know what to expect in specific industries.


Social media influences

"Word of mouth" is one of the leading information sources among investors and site selectors. Social media itself or social influences (people or platforms acting as trusted sources of information) are today's word of mouth media.  Often, investors seek the platforms to converse and connect with other investors. Also, host countries can use social media platforms to reach out to their target investors and improve their position in the investment value stream.


Bottom Line

Social media have influenced FDI through increased transparency, engagement, and overall change in foreign investors' behaviors. The Online Publishers "TOP" Platform is among the leading social media platforms that links governments to foreign investors. We offer tons of information about FDI, ways of promoting it as well as its regulatory policies in different countries.