ECONOMICS

B.          Foreign sector

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.

The roles of foreign sector in Tanzania

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.