Reasons for foreign investment by MNC.
• To seek new markets for their products
• To seek growth opportunities outside their home markets
• To take advantage of tax incentives offered in other countries
• To avoid regulatory and political bottlenecks in their home country
• To diversify their operations and reduce their overall risk
• To seek new technology in form of scientific ideas for design of their products and services
• Increase production efficiency by moving to countries with low production costs.
Explain the main reasons why multi-national companies (MNC) seek foreign investment.
