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 Countries

Foreign Direct Investment will help your country grow economically in these ways.

1.       Economic Stimulation

The role of FDIs in economic development is regarded as one of the most important contributors to a country’s economic growth. This type of investment for countries has grown in the last 25 years and is especially important to developing countries, who see FDIs as an essential ingredient in their economic strategy. The TOP platform works with connections all over the world to help drive FDIs to your country which can quickly stimulate it economically and promote growth.

  Development of Human Capital

People are a country’s greatest resource. Without the success of the people of a country, it fails economically and socially. FDIs enhance the skills and knowledge of people by giving them better access to education and training. They can take that education and training and find better jobs, improving their economic outlook, and benefitting the country as a whole. By investing in its people, a country invests in itself.

3.       Increase in Employment

With new investment comes the growth of new companies and organizations. Those new firms will need new employees. This gives the people of the country more opportunities for employment that can help them financially. Both skilled and unskilled workers can benefit from greater employment. Greater investment in the country also means better opportunities for entrepreneurship. People who normally would be unemployed may be able to start their own business with the help of the government who can help them financially. This in turn benefits the entire country.

4.       Access to Management Expertise

When a country participates in FDIs it is opening itself up to more resources that allow it to tap into the knowledge and expertise of other countries and individuals who can help it succeed and manage itself correctly. With knowledge comes power, and having that knowledge takes the right investment in a country. FDIs give a country access to the management expertise they need to succeed economically.

5.       Skills

With access to greater capital comes better skills for both the government and the people of the country. People develop more job and business skills through training and resources, and the government develops better management and technical skills. With better skills, developing countries can bring themselves up economically and developed countries can improve their current economic situation.

6.       Technology

An important ingredient to the success of a country is its ability to keep up with technology. Otherwise, it will fall behind and not have the ability to maintain strong relationships with other countries. FDIs can help a country economically by giving it the resources to acquire new technologies, better operational skills to handle the technology, and high-quality financial tools to help it do business with other countries and enhance its trade abilities.

Business

Foreign Direct Investment can help your business cut costs and lower risk in these ways.

1.       Market Diversification

A company may want to expand its market into other areas but not have the resources to do so. This diversification can include adding a product to its line or adding a new model of an existing product to increase profit. FDIs help a company with the resources it needs to diversify in its market, improve economically, and cut costs.

2.       Tax Incentives

Corporations can benefit from FDIs through the tax incentives they have access to by participating in these investments. Getting tax relief from FDIs is a great draw for many corporations to take advantage of them.

3.       Lower Labor Costs

Through FDIs a business can expand its operations into another country. This is considered a “Horizontal FDI.” If the business chooses to have operations in a country where labor costs are lower, it in turn cuts costs for the business and benefits it economically.

4.       Preferential Tariffs

Through FDIs companies can avoid high tariffs by doing business directly in a country. Rather than exporting their products to the country, they can avoid tariffs altogether by moving production to the same country. This cuts costs for the business and helps it grow.

5.       Subsidies Diversification

With FDIs a business can use money granted to them by their government to grow their business in the way they see fit. This may include increasing employment or purchasing more products that will increase their economic output. 

In closing, FDIs are powerful tools to help a country grow economically and a business cut costs as well as reduce risk. They help countries access more human capital, increase employment and skills, improve their technology, and have greater access to management expertise. FDIs help businesses cut labor costs, diversify their market and subsidies, reduce their tariffs, and have greater access to tax incentives. All of these advantages mean one thing: A country or business benefits economically. With TOP’s connections and expertise in FDIs, using their platform to grow your business or country is the right choice.