Why do developing countries allow foreign direct investment?

Question

Quizplus · Accepted Answer

Developing countries often lack the necessary capital to finance their development projects, such as infrastructure or technology. Foreign direct investment, where a foreign company invests in the country and brings in capital and technology, can be an effective way for the country to obtain the resources it needs to develop. Additionally, FDI can create jobs and boost the economy. While the other options may play a role in some cases, they are not the primary reason why developing countries allow foreign direct investment.

Why Do Developing Countries Allow Foreign Direct Investment