The Chinese Economy What are the three benefits of FDI?

Question

Question

What are the three benefits of FDI? The Chinese Economy

business economics

Answer 1

Answer #1

Answer

Three benefits of FDI are as follows;

FDI brings new investment in the host country and by creating new investment, FDI not only augments the total investment, it also bridges the saving-investment gap in the host country.
With the inflows of FDI, the host country is also benefited by global technological, managerial, and organisational skills that come through FDI. FDI raises technological standards, levels of efficiency and competitiveness of the host country.
The inflows of FDI also raise foreign currency reserves in host country.

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Answer 2

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