I have a questions relating Foreign Direct Investment. (1 Viewer)

[ragingcurry]

I was reading the textbook 'Australia in the Global Economy 2016' and in chapter 4 ("Australia's trade and financial flows") I came across this sentence "Governments preferred direct investment, because it brought the benefits of job creation and technology transfer."
Can someone please explain to me how direct investment creates jobs. I understand the technology transfer part but I am a bit confused about job creation.

Also I cam across this sentence "Portfolio investment was not as important, as the level of overseas purchase of shares was relatively small and, in an environment where financial markets were regulated, overseas loans were not common."

How are overseas loans related to portfolio investment. Is it because people borrow money to invest in something, because they may have insufficient funds?
Any help would be appreciated

 

[ragingcurry]

Thanks a lot

 

[Zoinked]

Pretty much, FDI is the investment into businesses in Australia which helps them to be able to employ more people and build more factories/stores etc with this extra investment because they want to reap more profit.