The company invests in Canada in the expectation of marketing its product domestically or abroad. Its investment in turn generates benefits to the community through increased trade opportunities, the introduction of new technologies, job creation, the payment of taxes and the purchase of goods and services locally. This is FDI in action. Foreign investment is an important source of economic growth . 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.