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This results in a large scale flow of funds into the developing country, which is good for the developing nation as it is bringing in a gross amount of foreign currency into the country.
We know that DFI is a component of Capital Account. At macroeconomic level, FDI may significantly contribute to finance current account deficits in the balance of payments of host countries. Though the improvement of balance of trade is an argued topic but apparently it is good for the economic growth of a country.
? Create Employment:
From the perspective of a developing country, establishing a MNC is beneficial in the sense that it creates a huge chance of employment for the labor force of the nation...
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