Foreign direct investment applies to a person or business that owns a minimum of 10 per cent or more of a foreign organisation or company. If a person or a separate business invests less than 10%, then the International Monetary Fund considers it part of their stock portfolio. But you need to know about the role of foreign direct investment on the growth of a country. There are several ways it benefits a company; however, it has a significant role in developing the economic condition of a country. Read more to find about the role of FDI. (Arts Assignment Help)


  1. It provides capital

Foreign direct investment brings capital to the much needed developing countries. With the help of the capital, a country can achieve higher targets of national income. The investment can lead to the upliftment of a developing country. The investments cannot bring adequate savings; these developing countries need to find a way to save from foreign investment. It can happen through external borrowing or the encouragement of foreign direct investment. FDI is an effective way to include additional capital, but it has potential risks that come with it. (Fixed Income Analysis)


  1. It removes the hurdle of the balance of payment

when you come across a brand management paper, you can find how FDI helps to bring an inflow of foreign currency and help remove the hurdle of the balance of payment. Several developing countries suffer from the balance of payment deficits because of the demand for foreign exchange. It is generally more than the earning capacity of the country. With the removal of the balance of payment, countries can reach higher economic growth. (Time Horizon)


  1. FDI brings technology, management and marketing skills

FDI helps with different skills that are either missing or scarce in most developing countries. These skills are technology, management and marketing skills. Without these, development cannot take place. Any business cannot flourish without management, and brand management plays an essential role in the growth and profitability of a company. Bringing new skills in developing countries is a critical advantage in FDI. with these, the countries can bring in capital from the international capital and the governments. (Dissertation Help London)

  1. FDI promotes exports of host developing country

FDI promotes exports. With their global network of marketing, foreign companies possess techniques of possessing marketing information to utilise the strengths to promote exports of developing countries.

  1. FDI offers increased employment

to foreign companies; once they invest in a company from a developing country that employs the developing country, it provides high employment.


The above mentioned points can help you understand the role of FDI and help you include them in your dissertation structure.