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Question 25 of 29

Q.State the objectives of Foreign Direct Investment.

Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2024Subjective· 3mImportance★★★★★
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FDI aims to bring foreign capital, technology and management into a country to raise production, employment, exports and overall economic growth.

In the Tamil Nadu HSC Commerce syllabus (International Economics), the objectives of Foreign Direct Investment are:

  • To supplement domestic savings and bring in long-term foreign capital for investment.
  • To bring in advanced technology, technical know-how and modern management practices.
  • To increase production, productivity and the quality of goods.
  • To create employment opportunities in the host country.
  • To promote exports and earn foreign exchange, and to give access to global markets. …

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