What is a key benefit of direct foreign investment?

Access to new markets and customer bases represents a significant advantage of direct foreign investment. When a business invests directly in a foreign country, it gains the opportunity to operate within that market, allowing it to tailor its products or services to meet local consumer preferences effectively. This strategic move can lead to increased sales and profits as companies connect with previously untapped customer segments.

Direct foreign investment often helps businesses establish a localized presence, making them more responsive to the needs of the regional market. This can include adjusting marketing strategies, distribution channels, and product offerings to align with local cultural and economic contexts. Therefore, gaining access to these new markets and customer bases can drive substantial growth and competitive advantage for companies engaging in direct foreign investment.

The other options, although they may have some relevance in different contexts, do not capture the primary advantage of direct foreign investment as effectively as access to new markets and customers does.