Foreign investment, Microeconomics

Foreign investment:

To attract foreign investment – Developing Plans are used as a means of attracting foreign investment or foreign aid.Foreign government and international organizations giving grants and loans need to be satisfied that the finance they provide will be put to good use. Private investment will also be encouraged by realistic plans showing the extent of economic growth that is expected to be attained.Donor countries are therefore interested in well coordinated plans to direct investment funds.

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