what is the need for foreign investments?

Answer 1

I you do not have money or knowhow to do a job, you will have the following choices: (i) go to the bank for money loan, (ii) establish sharing entity with somebody who has the money or the knowhow, (iii) rent the job to who can do it. If we expand this to the country level, a country can get loan from International Lending Institutions or call upon foreign investors to venture or rent works in that country. Therefore, foreign investment is meant basically to pull foreign resources and technology into a country.

Answer 2

diversification of risk / growth