subject: The Benefits and Science of International Investment [print this page] The opportunities for developing economies are significant as well. Through the application of capital, technology, and a range of skills, multinational companies' overseas investments have created positive economic value in host countries, across different industries and within different policy regimes.
The single biggest effect is the improvement in the standards of living of the country's population, as consumers have directly benefited from lower prices, higher quality goods, and a broader portfolio of goods to choose from. Improved productivity and output in the sector and its suppliers indirectly contribute to increasing national income. And despite often-cited worries, the impact on employment is either neutral or positive in two-thirds of the cases.
Foreign direct investment is already having a dramatic impact on the way companies do business and developing economies integrate with the global economy. Compared to its potential, however, it's just a drop in the bucket.
The Benefits and Science of International Investment
