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And domestic businesses without FDI benefit from the spillover effect, gaining access to technology and expertise, as well as stronger management and organisational practices.

Countries across the world compete fiercely for FDI because of the strong correlation between FDI and economic growth – with investment often creating many new jobs and local ‘ecosystems’ of smaller businesses.

Knowledge diffusion is also an associated benefit of FDI. Foreign owned companies tend to be more likely to collaborate with partners, such as government and education institutions.

Invest Chart Point 6