Monday, November 6, 2017

Importance of FDI to the economy



Foreign Direct Investment (FDI) made by companies helps to establish new business operations and acquire new relationships and assets in a new country. According to FDI Confidence Index, a global business executive survey, the US remains the top-ranked FDI destination for 4 year in a row. The United States economy is showing resilient to the risks that other countries are facing, including other first world countries. Companies look for the following before deciding where to place their next investment, Labor availability and wage rats, complexity of tax codes, effectiveness of political systems, strength of public education, and conditions of infrastructure and ongoing commitment to maintain. These companies strive for a friendly-business environment. Companies that find an area that meet these criteria are more likely to build a new part of their company there, therefore will help that cities economy and in the long run help the US economy.

http://www.areadevelopment.com/LocationUSA/2017-US-inward-investment-guide/importance-of-FDI-to-US-economy.shtml

2 comments:

  1. That is very interesting to read. I did not think, that the US was considered the most stable economy in the whole world. Do you think that with Trump, this could change - looking on the differences between him and Obama?

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  2. Is there any other country that runs close to how well the US is doing? If so what country. Super interesting where this will go since Trump is in office.

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