A Critical Concern, Pages 142-162, of the textbook, International Marketing. Governments and Foreign Investment Governments normally like large amounts of foreign investment for several reasons, including To increase domestic employment. The presence of foreign-owned corporations in a country normally means additional loyal employment opportunities. Despite party affiliations or personal perspectives, all politicians like to minimize unemployment to increase the opportunities for re-election. To increase tax revenues.
Most governments impose a variety of payroll taxes on firms doing business in their district.
In addition to employment opportunities in the local community, the associated tax tabs will boost government coffers and fund additional governmental services. To provide for enhanced training opportunities. When firms conduct business in foreign countries, there is normally a transfer of technology . The transfer of technology may require local employees to receive sophisticated training to operate the technology. These training opportunities are likely to provide increased long-term earning power of employees in the local community.