Answer to Question #240789 in Macroeconomics for Bianca

Question

Benefits of how foreign investments from European countries could influence local economic growth in South Africa ?

Answer 1

The advantages that are discussed include the following:

(1) Growth, higher income and reduction of poverty in a country 

(2) Incentive structures resulting from FDI that lead to productive investment (3) The low volatility of FDI flows than other capital flows

(4) Increased tax revenue

(5) Technology and management