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Investors sought after for economic development

By Brian Anderson
Published: Tuesday, July 13th, 2010

1During the time wherein people are fearing worldwide recession from happening again, different countries try hard to restore the confidence of investors in their respective regions. Since most of the national development is being brought about by major investments in countries, countries are becoming all the more competitive in securing major investors from settling int heir country instead.

Most multinational companies pick China among other Asian countries when thinking about where to create their Asian business base or factory. This is so because China has the land area to spare where large factories can be built. And because of the dense population that is available in the country, there will be little problem about getting the manpower needed to run the factory. Also, it is important for investors to pick a country which can generate electricity so the factory operations will not be delayed.

Still, other multinational companies choose to settle in other countries. The business process outsourcing was originally based in India because of the cheaper wages for the Indian nationals. Next among the BPO base countries is the Philippines where the employees not only have almost native American accent but also have enough manpower to run successive creations of other BPO centers.

The good thing about securing these investments is that it is able to help the host countries in more than one way. First is that the investments spurs job creation. And when job is created, people will have the opportunity of beign employed and the unemployment rate will decrease. And with decreased unemployment rate, the economy is assumed to be more productive. This will then generate more taxes for the country. And the government can thus divert this tax into further development of the countries exploitable assets to earn more income for the country. 

As more income is generated, tax collections also increase. And the government can thus provide more loans for the people. While home and car loans are the most common purposes of these loan applications, the government also gives premium to loan applications for business purposes. The government acknowledges that this will have a positive effect for the economy after the business is fully operational. And thus the government is sure to encourage micro entrepreneurs to set up their businesses during these times.

Therefore it is in the best interest of the countries to find more investors to settle in their country. The more investors there are, the more the economy will improve.

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