Why do countries encourage investment?

Topic: Investing in another country – After you have read the literature posted under unit four, the assignment is to write a two (2) page paper discussing foreign direct investment and regional trade groups. Multinational firms view the world as a single entity and all
people as customers, employees, and suppliers. International Business( assignment 4). Why do companies invest outside their
home borders? Why do countries encourage investment? Why do countries form regional
trade groups? What is the benefit of countries trading amongst each other? How are
these regional trade groups agreements different from global trade agreements such as
those agreed upon through the WTO? In writing this paper, choose two countries for your
example (one should be the country you are doing for your country report) and how the
investment in that country benefits both the country receiving the investment, and the
company making the investment. How does the investment help its people? Is the
investment simply one of seeking lower labor costs or are there other benefits? What are
the risks of investing in another country? Give examples. You will have to show you have
read the readings and some additional sources. This does not mean to just quote from all
the material, but go beyond that in presenting/discussing the arguments made in each
reading. I would like your informed opinions included in the paper.

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