Why governments intervene in FDI - Reasons for intervention by the host country - Obtain resources and benefits

4 important questions on Why governments intervene in FDI - Reasons for intervention by the host country - Obtain resources and benefits

Governments might intervene in FDI to obtain benefits such as:

- Technology
- Management skills
- Employment

Why is access to technology a driver for FDI internvention:

Investment in technology tends to increase the productivity and the competitiveness of a nation.

How can management skills develop by encouraging FDI:

These nations can attract talented managers to come in and train locals and thereby improve the international competitiveness of their domestic companies
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Why can employment benefit from encouragement of FDI?

Locals who are trained in modern management techniques may eventually start their own business

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