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How SMEs can benefit from foreign direct investment

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What benefits do FDI offer Latin America’s SMEs?

According to the OECD, the most attractive countries for foreign direct investors are those that have large reserves of material and raw material resources in addition to efficient and trained human capital, or that are linked to developed countries through trade agreements promoting investment.

Many Latin American countries fit this description, but also many small and medium Latin American companies may profit from the sustained interest of multinational firms on their access to these resources.

This is the message of an article written by the Inter-American Development Bank’s Connect Americas, an initiative designed to help small and medium companies in Latin America, expand though international trade and investment.

The article states some of the advantages which SMEs that are open to foreign direct investments get: the transfer of knowledge and technology, job creation, enhanced skills and development of human and business capital.

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ConnectAmericas is the first social network for businesses in the Americas, dedicated to promoting foreign trade and international investment. With the slogan "Take the world with your hands," the proposal of the platform is to help Small and Medium Enterprises (SMEs) to grow their business internationally in three steps: CONNECT, LEARN AND FINANCE.

 

 

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