This
refers to the portion of economy or an economic model that includes exports,
imports and perhaps other international transactions. The portion of an economy
that is owned by foreigners or the rest of the world, outside of the country
being considered. In the accounts of a country all those involving
international transactions.
Provision of
goods and services; Most of foreign
sectors in Tanzania deal with the provision of goods and services which in turn
helps to raise the standard of living. For example provision of services like
education, health and transportation. Also they provide goods such as clothes,
shoes, bags and soft drink.
It improve
foreign exchange within the country;
this is due to the development of foreign investment within a country like
Tanzania need importation of capital goods due to the purposes of
industrialization and hence needs the exchange of foreign currency in terms of
domestic currency.
Provide the
efficiency in utilization of resources;
this is due to advancement of technology used foreign investors when they are
investing in various sectors like agriculture and mining sectors create full
utilization of resources hence stimulate maximum production in an economy.
It increases the
government revenue; Foreign investors
increase the government revenue when they invests within our country. The
government increase its revenue through collection of taxes, the increase in
foreign investment within a country rises tax base to the government hence
government revenue rises within the time.
Provide
employment opportunities to the people;
the increase in foreign investment within a country help to create different
levels of employment to the people both skilled and unskilled and hence people
improve their living standard because of income they earn. For example those
people who are employed in different sectors like industry, mining, and
agriculture
Bring
advancement of technology within our country;
foreign investment within our country help to improve the advanced technology
to the indigenous people hence local people start utilizing their resources
with the knowledge they get from the foreigners. For example machines that used
in Agriculture, mining, fishing and industries.
Help to increase
production for export; the increase
of foreign investment within a country led to the full utilization of resources
hence stimulate production of goods and hence more goods available for export
which in turn led to increase foreign currency within the country.
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