the importance of foreign direct investment

Foreign direct investment is of important economic topics firewall significantly in recent times, where the race of developing States, in particular, to attract foreign direct investment. Foreign direct investment (FDI) is the transfer of foreign capital investment abroad directly, since it is one of the main engines of economic growth in the country.
Foreign direct investment contributes to many things, to expand the base of investment in the country, as well as in solving the problem of unemployment through the creation of new job opportunities, and the introduction of advanced technology, the state, and learn about the modern methods of management, communication and marketing, which lead to the National Employment gain higher skill and experience.
Aware of the importance of foreign direct investment, so always seeks to attract foreign investment to it through the creation of an atmosphere conducive to foreign investment, and the provision of facilities and incentives to the foreign investor.
I have numerous concepts for foreign direct investment, where defined as "those investments administered by foreigners; because of the full ownership, or 5-10 share justify them right of management, most of these investments by multinational companies." But he had an effective role in the life of society, which is the basis of progress, and this is important:
1-foreign direct investment is of great importance in the economies of host countries, where several positive effects, it would contribute to raising the rates of investment through foreign direct investment flows. It also plays an important role in the creation of new job opportunities, thus reducing the problem of unemployment, which is a widespread phenomenon in developing countries. Foreign direct investment also affect on the balance of payments through the flow of foreign capital, which makes it a good source for hard currency and increasing physical capital in the host States.
2-contributes to direct foreign investment in the transfer of advanced technology and modern management skills and host States, which have a major role in the development of skilled workers and raise the efficiency of production; in view of the expertise of foreign companies to the economic activity of the wide knowledge of the arts of production and marketing. It also contributes to direct foreign investment in the development of the export sector which is urgently needed in developing countries, and increasing attention to research and development in host countries, as well as contribute to increased productivity and production, leading to an increase in national income, thus increasing the average per capita income, thus improving the level of luxury.

3-but in spite of the positive impact brought by foreign direct investment, but the negative effects on the host countries, where foreign direct investment is a means to drain the wealth of the developing countries, and that foreign investors may bring it is not commensurate with the circumstances of the developing countries, which are dominated by unemployment, since the existence of this type of technology, which is based on the intensive use of capital works on the aggravation of the unemployment problem. Foreign direct investment also may increase the monopoly of local markets in host countries, thereby increasing the dependence of developing countries for developed countries.
This investment is the gateway to achieve sustainable development in the Arab world in general and the world in particular.

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Tags: development, direct, foreign, investment, local, markets, sustainable

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