Why do governments try to attract more foreign investment?

Q.:- Why do governments try to attract more foreign investment?

 

Answer:-

Governments try to attract more foreign investment for the following reasons

(a) It helps in improving the financial condition of the people by accelerating growth of the economy.
(b) Foreign investments create new job opportunities in the country, directly as well as indirectly in support services like transportation.
(c) The government gains additional taxes by taxing the profits made from foreign investments.