The Industry Canada and Foreign Affairs and International Trade study also suggested that if Canada's share of world investment capital had increased by 1 percent, over the last ten years, it would have lead to an increase of between 10 and 15 percent in the country's Gross Domestic Product, the value of goods and services produced in a year. Foreign investment is also an important source of technology . Considering the high costs of research and development, international investment, often as international alliances, is a critical way Canadian firms can access the leading edge technologies. The economic contribution of foreign firms to Canada's economy is substantial . The sales of companies controlled abroad account for nearly 30 percent of all corporate sales in Canada.
Foreign investment is an important source of management expertise .
A foreign investor will often bring new international marketing strategies, increased strategic resources and new perspectives on management of people and technology that enhance the ability of the existing company to compete and raise the overall level of productivity of the economy. Foreign investment provides much needed additional capital that would otherwise not be available. The positive effects of these investments often spill-over to benefit domestic firms. Domestic producers and suppliers benefit from foreign investment as they often provide goods and services to the new facility. Also, as employees trained in the new processes and exposed to new management styles change employment, they take their knowledge and skills with them, thus providing their new employer with a the benefit of their experiences.