Dayton Business Daily

what is benefits and disadvantages of direct investment?

compare to collective investment, what advantages and disadvantages direct investment has? please, answer me in detail. Academically if possible..base on UK market.

Public Comments

1. One of the advantages of direct investment is that it helps in the economic development of the particular country where the investment is being made. The importance of this factor lies in the fact that this transfer of technologies cannot be accomplished by way of trading of goods and services as well as investment of financial resources. The disadvantages of foreign direct investment occur mostly in case of matters related to operation, distribution of the profits made on the investment and the personnel. One of the most indirect disadvantages of direct investment is that the economically backward section of the host country is always inconvenienced when the stream of foreign direct investment is negatively affected.