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Supplement to domestic capitalIn the arguments about economic growth, factors which are always mentioned. When an economy want to grow faster, it needs a lot more capital. If not enough domestic capital, this economy will want foreign capital, including FDI.Assimilate technology and management know-howIn some cases, despite the lack of growth capital can still mobilize are somewhat equal to "tighten policy". However, technology and management know-how then can not get by that policy. Attracting FDI from multinational companies will get a chance to acquire the technology and business management know-how that the company has accumulated and developed over the years and by the huge expenses.Join the global production networkWhen attracting FDI from multinational companies, not only the enterprises invested by multinational companies, which even the other companies in the water business relationship with enterprises which will also join the labor assignment process area. Therefore, water attracting investment will have the opportunity to participate in global production networks for promoting exports.Increase the number of jobs and train workersBecause one of the purposes of the FDI is exploited the conditions to achieve lower production costs, should the enterprises of foreign investment will hiring more local workers. The income of a local population be improved will contribute positively to the growth of local economy. In the course of that employment, occupational skills training, which in many cases is new and progress in the developing countries attract FDI, will be providing enterprise. This creates a team of skilled labor to attract FDI. Big budget revenueFor many developing countries, or for many local, taxes due to the enterprises of foreign investment is an important revenue source.
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