Why do governments try to attract more foreign investment?

Governments try to attract more foreign investment because:

1. Attracting foreign direct investment (FDI) is crucial for a country’s economic growth and global competitiveness.
2. FDI brings in capital, technology, and expertise, which can enhance productivity and contribute to overall development.
3. The technology transfer benefits local industries and fosters innovation.
4. FDI generates employment opportunities directly (within the investing company) and indirectly (in support services like transportation and logistics). New jobs contribute to social welfare and reduce unemployment rates.