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Most FDI is made to gain access to low-wage labor. Explain Why?

Question:

Most FDI is made to gain access to low-wage labor. Explain Why?

Foreign Direct Investment (FDI):

Foreign Direct Investment means the amount invested by the domestic company or individual into an overseas country. Such investment is made to utilize the resources of foreign countries and also to earn more income.

Answer and Explanation: 1

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The overseas investment is made to get the benefit of the labor working at low wages in developing countries because it reduces the cost of production...

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What Is Foreign Direct Investment? - Definition, Advantages & Disadvantages

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Chapter 19 / Lesson 12
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Learn what a foreign direct investment (FDI) is. Find out which types of FDIs exist and see some examples. Understand the pros and cons of foreign direct investment.


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