Many countries have been battling slow economic growth since year 2008. Some countries are on the verge of a financial breakdown. Financial problems and negative growth have encouraged many governments to solicit foreign investment in their countries. There are several advantages to attracting foreign investment. There are some disadvantages too.
On the bright side, foreign investment helps the local economy in many ways. When foreign companies open their branches and offices in a country, they help generate several jobs. This gives a boost to the local economy. The arrival of new companies also increases the competition in the market. This will encourage companies to price their products competitively. Tough competition will also improve the quality of products and services. It is evident that foreign investment benefits not only the country but also the consumer.
On the flip side, foreign investment has its fair share of disadvantages too. One should not forget that companies that set up their establishments on the foreign soil are driven by their desire to make more money. They aren’t looking to engage in charity work. They are financially stronger than local companies and hence they can easily stifle competition. Also in the past many multinational companies have been accused of engaging in unethical practices to kill local competition. Because of these reasons many economists feel that governments should help local companies instead of inviting foreign companies.
Considering the arguments in favor of and against inviting foreign companies, it is not hard to see that there are several benefits to attracting foreign companies. There are a few disadvantages too. However, governments can solve these problems by enacting proper laws to ensure healthy competition. By doing this governments can also protect small businesses and enable economic growth. 
 Many
  countries
 have been battling slow economic growth since year 2008.  
Some
  countries
 are on the verge of a financial breakdown. Financial problems and  
negative
 growth have encouraged  
many
  governments
 to solicit  
foreign
  investment
 in their  
countries
. There are several advantages to attracting  
foreign
  investment
. There are  
some
 disadvantages too.
On the bright side,  
foreign
  investment
  helps
 the  
local
 economy in  
many
 ways. When  
foreign
  companies
 open their branches and offices in a  
country
, they  
help
 generate several jobs. This gives a boost to the  
local
 economy. The arrival of new  
companies
  also
 increases the  
competition
 in the market. This will encourage  
companies
 to price their products  
competitively
. Tough  
competition
 will  
also
  improve
 the quality of products and services. It is evident that  
foreign
  investment
 benefits not  
only
 the  
country
  but
  also
 the consumer.
On the flip side,  
foreign
  investment
 has its  
fair
 share of disadvantages too. One should not forget that  
companies
 that set up their establishments on the  
foreign
 soil  
are driven
 by their desire to  
make
 more money. They aren’t looking to engage in charity work. They are  
financially
 stronger than  
local
  companies
 and  
hence
 they can  
easily
 stifle  
competition
.  
Also
 in the past  
many
 multinational  
companies
 have  
been accused
 of engaging in unethical practices to kill  
local
  competition
.  
Because
 of these reasons  
many
 economists feel that  
governments
 should  
help
  local
  companies
  instead
 of inviting  
foreign
  companies
.
Considering the arguments in favor of and against inviting  
foreign
  companies
, it is not  
hard
 to  
see
 that there are several benefits to attracting  
foreign
  companies
. There are a few disadvantages too.  
However
,  
governments
 can solve these problems by enacting proper laws to ensure healthy  
competition
. By doing  
this
  governments
 can  
also
 protect  
small
 businesses and enable economic growth.