International trade not only results in increased efficiency, it also allows countries to participate in a global economy, encouraging the opportunity for foreign direct investment (FDI). In theory, economies can therefore grow more efficiently and can more easily become competitive economic participants.
For the receiving government, FDI is a means by which foreign currency and expertise can enter the country. It raises employment levels, and theoretically, leads to a growth in gross domestic product (GDP). For the investor, FDI offers company expansion and growth, which means higher revenues.
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