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Why countries seeks FDI?

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  1. #1
    SudhirPal's Avatar
    SudhirPal
    SudhirPal is offline eTI Member

    Why countries seeks FDI?

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    Hi,
    I understand you completely anand, thanks but there is a question running in my mind that why the countries seeks FDI.

  2. #2
    Anand mohan's Avatar
    Anand mohan
    Anand mohan is offline eTI Copper
    Hi,
    thanks buddy, Answer to your query as per my knowledge is because of three main reasons

    (a) Domestic capital is inadequate for purpose of economic growth.

    (b) Foreign capital is usually essential, at least as a temporary measure, during the period when the capital market is in the process of development.

    (c) Foreign capital usually brings it with other scarce productive factors like technical know how, business expertise and knowledge.
    I hope you understand, thankyou

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