Question

infrastructure includes foreign direct investment (FDI).explain

Answer 1

Investment plays an important role in stimulating the growth process of a country. Infrastructure builds an environment conducive for investment and thereby, attracts investors to these regions. The presence of infrastructure such as transport, communication, banking and power in a region facilitates the establishment of production units and industries in that region. Therefore, a country that has sound infrastructural facilities is able to attract investments from foreign countries. However, a country that lacks in such facilities finds it hard to attract foreign investments.

Therefore, we can say that infrastructure encourages foreign direct investment in a country.