It is recognised as the fastest way for national companies to integrate into the global world and compete in the international market. One widely used method is the creation of agencies specialising in taiwan phone code investment promotion to attract foreign companies to set up business in the country and encourage national companies to expand abroad. A rational and coordinated policy builds the image of the country as attractive and facilitates the attraction of capital.
The effectiveness of capital transfer is influenced by both endogenous and exogenous factors. External factors, i.e. those not directly influenced by the company, include the market structure (degree of market differentiation and types of entry barriers), the technological conditions of a particular sector (consumer or investment goods) or the economic policy of the State. Internal factors include the scale and area of operations, absorption potential, financial capacity, the strategy used, etc.
The reasons for the popularization of FDI are the liberalization of foreign economic policies, the high costs of innovation and the control and protection of intangible assets. Especially in emerging markets, they have become the main channel of access to valuable technology. Direct investment differs from indirect investment in that its main characteristics are the transmission of productive knowledge, technological solutions, transfer of new technologies, know-how, adaptation of modern management techniques, etc. There are 4 basic reasons for foreign expansion.