Foreign direct investment is a form of investment which benefits all stakeholders. Discuss.

Foreign direct investment occurs when a company takes a controlling interest in a business entity located in another country. This company becomes involved in the day-to-day undertaking of the new venture, which proves to be advantageous to the stakeholders.

A country can develop economically due to foreign direct investment because the acquisition may lead to the presence of other international companies and increased revenue realized by the government. The foreign direct investment provides employment as a staff is required to help in the new companies leading to increased economic empowerment and purchasing power for the locals. The company may also benefit from provided tax incentives.

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Academic.Tips. (2023) 'Foreign direct investment is a form of investment which benefits all stakeholders. Discuss'. 15 May.

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Academic.Tips. (2023, May 15). Foreign direct investment is a form of investment which benefits all stakeholders. Discuss. https://academic.tips/question/foreign-direct-investment-is-a-form-of-investment-which-benefits-all-stakeholders-discuss/

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Academic.Tips. 2023. "Foreign direct investment is a form of investment which benefits all stakeholders. Discuss." May 15, 2023. https://academic.tips/question/foreign-direct-investment-is-a-form-of-investment-which-benefits-all-stakeholders-discuss/.

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Academic.Tips. "Foreign direct investment is a form of investment which benefits all stakeholders. Discuss." May 15, 2023. https://academic.tips/question/foreign-direct-investment-is-a-form-of-investment-which-benefits-all-stakeholders-discuss/.

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"Foreign direct investment is a form of investment which benefits all stakeholders. Discuss." Academic.Tips, 15 May 2023, academic.tips/question/foreign-direct-investment-is-a-form-of-investment-which-benefits-all-stakeholders-discuss/.

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