Final answer:
Foreign direct investment (FDI) in a country brings funds and business culture from abroad, creates new well-paying jobs, introduces innovative technologies, and enhances the skills of domestic workers.
Step-by-step explanation:
Foreign direct investment (FDI) refers to purchasing a firm (at least ten percent) in another country or starting up a new enterprise in a foreign country. It brings funds and business culture from abroad and has several positive impacts. FDI creates new well-paying jobs, introduces innovative technologies, and enhances the skills of domestic workers.
For example, when the Belgian beer-brewing company InBev bought the U.S. beer-maker Anheuser-Busch, it brought in new funds and business practices from Belgium into the U.S. This acquisition introduced innovative brewing technologies and created new high-paying jobs for Americans.
Overall, FDI is beneficial for both the investing country and the host country, as it stimulates economic growth, encourages knowledge transfer, and boosts employment opportunities.