This paper had been conducted for the purpose of the identification of the degree of the effect of the foreign direct investments over the economic growth and development of the developing nations. The main questions of the research are how the foreign direct investment affects the financial capabilities of the governments of the developing nations? What is the impact of the foreign direct investments on the rise of the income level and standard of living for the population within the developing nations? What is the impact of the foreign direct investments over the enhancement of the gross domestic product of the developing nations?
The internationalization and the globalization had been provided the business with variety of opportunities for the expansion of its operations and process for the expansion of the international organizations’ market shares and sales within different international markets. The foreign direct investment had been considered one of the most successful strategies that are being adopted for the conduction by the large organizations to invade new markets within foreign states, alongside with the protection of the organizational highest level of income and revenues (KAMAR & BAKARDZHIEVA, 2002). The diffusion of the foreign direct investment had been witnessed within the developing nations, where the international organizations are considered to be attracted by the low salaries and wages level, the low levels of competition, and the attractive rules and regulations. The diffusion and the spread of the foreign direct investments are considered to be holding different impacts over the wellness and the economic strengths of the hosting countries (Salem, 2011).
The main problem that may be faced by the author within the research is considered to be based on the limited valuable information that can be allocated from the governmental and public agencies, which had been recognized not to be reflecting the reality effectively.
The following research will be highlighting the main impacts of the foreign direct investments over the economic growth of Egypt, which would be measured throughout the studying of the case study of the Egyptian financial strengths, the role of the foreign direct investments within the enhancement of the individual income, the standard of livings, the gross domestic product, and the national balance of payments. The author of the paper will be depending on the secondary data, which will be conducted throughout interviews that will be conducted with officials and Researchers within the Economic fields.