Foreign direct investment (FDI) involves investing foreign assets into domestic structures, equipment, and organizations rather than stock markets. The advantages of FDI include the transfer of technology and skills from foreign companies, increasing incomes through higher wages and salaries, developing human capital resources by increasing workforce knowledge and education, creating new jobs and opportunities that boost buying power, and promoting overall economic growth by increasing a country's real gross domestic product.

1. INTERNATIONAL STRATEGIC
MANAGEMENT
Advantages of Foreign Direct Investment
(FDI)
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By: Chan, Maryam and Nisreen

2. WHAT IS FDI?
 Foreign Direct Investment
 Components of a country’s national financial
accounts.
 Investment of foreign assets into domestic
structures, equipment, and organizations.
 Does not include foreign investment into stock
markets.
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3. ADVANTAGES OF FDI
Transfer of Technology
Sharing of skills, manufacturing methods and
facilities.
Increment in Income
Rise of wages and salaries.
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4. ADVANTAGES OF FDI
Development of Human Capital Resources
Knowledge and competence of the workforce.
Increase of education and overall human capital of a
country.
Creation of New Jobs
New job openings and opportunities.
More buying power to the country population.
Overall Economic Growth
Increase of Real Gross Domestic (GDP) Product. 4

5. ADVANTAGES OF FDI
5. Overall Economic Growth - Increase of Real Gross
Domestic (GDP) Product.
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